Formula 1 team to come out of administration
August 9 2018 , 1:08 am
F1 team Force India have agreed a deal to come out of administration, saving all 405 jobs at their Silverstone base.
The team’s management, backed by a consortium of investors led by Lawrence Stroll, have secured the future of the team.
Force India was placed in administration in July.
The team’s driver Sergio Perez said he started administration proceedings in order to fend off a winding-up petition from another creditor.
Canadian billionaire Stroll is the father of Williams F1 driver Lance.
Force India chief operations officer Otmar Szafnauer, along with his senior management team, worked with the administrator to find inve
stors able to secure the long-term future of the business.
“This outcome secures the future of the Force India team in Formula 1 and will allow our team of racers to compete to our full potential,” said Szafnauer.
“I am delighted that we have the support of a consortium of investors who believe in us as a team and who see the considerable business potential that Force India has within F1 now and in the future.”
Three of Formula 1’s biggest names – McLaren, Williams and Renault – have been concerned about a potential sale to Stroll.
The teams are worried that Force India, which uses Mercedes engines, could effectively became a Mercedes ‘B’ team.
It’s been known for some time that Lawrence Stroll was trying to buy the Force India f1 team, and given his credentials and contacts in the paddock it was no surprise when he was announced as the winning bidder for the Silverstone-based team.
However, the Canadian billionaire is not the only person involved, as he is the head of a consortium that includes several of his closest associates and friends. Their combined CVs certainly look impressive, and clearly helped to convince administrator Geoff Rowley that his bid was a serious one.
Stroll is believed to be not just the driving force behind the deal, but also the main investor, with the others putting in much smaller amounts.
However, their presence serves to divert attention from Stroll, who inevitably is sensitive to suggestions that he has bought the team purely to further the career of son Lance, rather than as a practical business investment.