Following Force India’s entrance into administration yesterday, its two administrators will be working on “an urgent basis” to solve the team’s state of affairs.
As co-owner Vijay Mallya relinquishes control of the Silverstone-based outfit, the team will be run by Geoff Rowley and James Baker of FRP Advisory, the former having been involved in the insolvency case of the now defunct Marussia/Manor F1 team.
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“We shall be engaging with key stakeholders on an urgent basis to secure the best outcome for creditors,” said Rowley.
“In the meantime, the team will continue to operate as normal, including racing in Hungary this weekend. Our aim is for business as usual whilst we assess options to secure the future of the team.”
Perez and creditors drive Force India into administration!
Force India’s financial issues are well chronicled and have lingered for some time, but things came to a head this week following a wind-up petition filed by Brockstone Ltd., an offshore entity domiciled in Guernsey and which handles the interests of Sergio Perez.
Force India has outstanding debt to Brockstone of $4 million, but Mercedes and the team’s main sponsor BWT are also among the creditors.
However, reports from Motorsportweek.com’s Joe Saward indicate that Force India’s largest creditor is actually Mallya himself – represented through a Luxembourg company called Orange India Holdings Sarl – with an outstanding debt of approximately £159 million!
According to Motorsport.com, in a letter to Force India employees, Mallya vowed to work with the administrators to take the team out of administration, or engage in a sale of the outfit for the best possible price.
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