The maker of the Caterham F1 car has "fallen into administration, threatening the future of the racing franchise," according to Andy Sharman of the FINANCIAL TIMES. London-based accountants Smith & Williamson were appointed administrators to Caterham Sports Ltd., the Oxfordshire-based manufacturer that designs and builds the F1 cars. The "cash-strapped" team’s "dismal on-track performance has been more than matched by its corporate travails." Caterham F1, formerly known as Lotus Racing and run under a license held by parent company 1 Malaysia Racing Team, has "yet to win a point in five years of competition and currently sits at the foot of the FIA championship." The lack of success "prompted team owner Tony Fernandes," the AirAsia tycoon and chairman of EPL side Queens Park Rangers football club, to "sell the franchise and the manufacturing company to a consortium of investors." However, the new owners -- whose identity remains unclear -- have "struggled to raise sufficient financing, leaving Caterham Sports owing millions to its suppliers" (FT, 10/20). In London, Alan Tovey reported administrators said they have been engaged in "positive" talks with the racing
team to "see if CSL can continue to supply it but said that if an agreement
cannot be reached they will begin discussions about selling the company's
assets." Administrator Finbarr O'Connell said that "although the around 200 staff working in
CSL's factory had their contracts transferred over to 1MRT in the past few
weeks," their jobs could be "at risk if an arrangement is not struck
soon." O'Connell: "As administrator I control the machines they are working on, the computers,
the factory, the intellectual property. If I don't do a deal with 1MRT then
they will have nothing to work on and their jobs could be at risk" (TELEGRAPH, 10/20). In London, Marcus Leroux reported Caterham Sports, which was "previously a subsidiary of 1MRT, had been owned
most recently by Constantin Cojocar, a Romanian former footballer, according
to the administrator." The administrator said that Cojocar "indicated in court papers that there
was an intention that his associates would provide funding" of £2M ($3.2M) per
week which would be used to "pay the company's creditors but that,
unfortunately, the money promised by his backers did not arrive" (LONDON TIMES, 10/21).
IMMEDIATE F1 FUTURE 'NOT THREATENED': AUTOSPORT's Jonathan Noble reported "senior management sources" insisted that Caterham's immediate future in F1 is "not threatened" by CSL going in to administration. Although CSL shares the group name and "same Leafield address as the F1
team, it is separate from the business" that owns the F1 license -- 1MRT. The division of the businesses, "which was central to a dispute over who owned items taken from Leafield by bailiffs, means that what happens to CSL will not impact directly on Caterham's F1 plans" (AUTOSPORT, 10/21).
