Caterham not under threat

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Published: Tuesday 21st October 2014 by The News Editor

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Caterham’s immediate future in Formula One appears to be safe despite an associated company being placed in administration.

At the start of the month bailiffs from The Sheriffs Office seized a variety of goods from Caterham Sports Limited (CSL), including a 2013 test car, a simulator, wheels, memorabilia and other equipment.

Pending the outcome of a court hearing, and the prospect of the goods being auctioned off, they were then placed on hold.

On Monday, it emerged CSL had entered into administration, removing the threat for now of an auction of the seized property.

CSL is a supply company to the Caterham F1 team, but it has emerged independent from the latter whose F1 licence is owned by a Malaysian company – 1Malaysia Racing Team Sdn Bhd (1MRT).

It is understood the assets seized by the bailiffs belonged to 1MRT, or a parallel company known as Caterham CF1 Grand Prix Ltd, and not CSL, so preventing the auction, in turn leading to administration.

Caterham CF1 Grand Prix Ltd was set up by team principal Manfredi Ravetto, seemingly to take over the running of the business of 1MRT.

This follows the takeover in July of Caterham F1 after entrepreneur and QPR owner Tony Fernandes sold up to a consortium of Swiss and Middle Eastern businessmen.

The group have inherited a litany of problems which has resulted in continual speculation with regard to Caterham’s future in F1.

CSL’s issues, with London-based accountancy firm Smith & Williamson serving as the administrator, at least has no effect on Caterham F1 for the time being.

A spokesperson for the administrators confirmed a solution is being sought.

The spokesperson said: “Positive discussions were held between the administrators and the team manager, Manfredi Ravetto, and also with the financial backers of the team on Friday, 17 October.

“It is hoped these will lead to a financially acceptable arrangement for the continuation of the relationship between the company (CSL) and the F1 team.

“If a financially acceptable arrangement cannot be agreed between the administrators and the Caterham F1 Team, the administrators will then enter into dialogue with other interested parties with regard to a sale of the business and assets of the company.”

Caterham are fully expected to compete in the remaining three grands prix of the season in the United States, Brazil and Abu Dhabi.

Published: Tuesday 21st October 2014 by The News Editor

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