Don’t miss the latest developments in business and finance.

Caterham may miss U.S. GP if team bosses cannot resolve dispute with administrators

Image
ANI London
Last Updated : Oct 24 2014 | 2:45 PM IST

Caterham Formula One team bosses have admitted that the team would struggle to race in next weekend's United States (U.S.) Grand Prix if they cannot resolve a dispute with administrators.

Caterham's factory was locked down on Thursday by administrators, who say that the team has made an inadequate offer to continue using the site. Colin Kolles, the de facto team boss, said that they have everything prepared to go to Austin for the US Grand Prix.

But, Kolles added that if the administrators do not change their minds, it's difficult, The BBC reported.

The cars are inside the factory, which the Caterham Formula One team has admitted that they do not own. But they insist that the cars inside it and their intellectual property belong to a company called 1MRT, which no longer has any relationship with Caterham Sports Ltd (CSL), which designed and built them and which was put into administration this week.

Kolles threatened legal action against founder Tony Fernandes, who sold the team in July and insisted that the new owners, a Swiss company called Engavest, have paid all dues under the agreement struck to buy the team from Fernandes.

Engavest said in a statement that it had total contempt for Fernandes and his Group executives with whom they entered a deal in good faith, adding that Engavest SA has fulfilled all the conditions precedent, including paying the purchase price for the shares.

More From This Section

The statement further stated that the shares have not been transferred and therefore Fernandes remains the owner of Caterham Formula One and is fully responsible for all its activities.

Fernandes responded by saying that they agreed in good faith to sell the shares to a Swiss company named 'Engavest' on the basis that Engavest undertook to pay all of the existing and future creditors, including the staff.

He added that the continued payment of staff and creditors was so important to him that he ensured that the shares would not be transferred to the new buyers unless they complied with this condition.

Sadly, Fernandes said that Engavest has failed to comply with any of the conditions in the agreement and Caterham Sports Ltd has had to be put into administration by the bank, with large sums owing to numerous creditors.

Formula One boss Bernie Ecclestone has said that he is trying to intervene in the dispute. He said that they are trying to help in any way, which they do with anybody that has run into a bit of difficulty.

Also Read

First Published: Oct 24 2014 | 2:33 PM IST

Next Story