Caterham's situation gets complicated

Last June, Tony Fernandes let a group of investors from the Middle East and advised by the Romanian Colin Kolles take the reins of his Caterham team. F1. We thought that the delicate financial situation of the Leafield-based team could improve, but it is clear this evening that the reality is very different.

The company Engavest SA, which represents the buyers' group, has published a very explicit press release on the current situation of Caterham F1 Team and the 1Malaysia Racing Team (1MRT), the entity which holds the team's F1 license. “Since the date of the agreement (June 29, Editor’s note), seller (Caterham Enterprises Ltd, Caterham (UK) Ltd and Sheikh Mohamed Nasarudin and its shareholders Tony Fernandes and Datuk Kamarudin Bin Meranun, Editor's note) refused to comply with its legal obligations to transfer its shares to the buyer. The latter was left in the unenviable position of financing the team he had purchased without having title to it. This is in complete contradiction to the press release of October 3, 2014, which stated that Mr. Fernandes and his Caterham group no longer had any connection with the Caterham F1 Team. »

Next comes the situation with Caterham Sports Limited, which has been making headlines in the UK since yesterday. This company ensures the logistics of the racing team by building the CT 05 in particular. However, this company has stopped paying. “The administrators of Caterham Sports Ltd were appointed by the Export-Import Bank of Malaysia Berhad (Exim), a creditor of Mr Fernandes and the Caterham Group. The buyer has no connection with Exim and Caterham Sports Ltd was a supplier to Caterham F1 Team. Unfortunately, the appointment of administrators had devastating effects on the F1 team's operations. Since their appointment, the administrators have issued various press releases which have been seriously damaging to the management of the Caterham team. After three months of managing in good faith, the buyer is now obligated to explore all options, including removing its management from the team. The lawyers have been instructed by the buyer to take all necessary steps towards all parties, including Tony Fernandes who, as the license owner, will be expected to manage the F1 team. »

We understand that investors could quickly exit the game, and Tony Fernandes could, without wanting to, find himself once again at the head of a ship in real distress, while the last two rounds of the season are looming in Austin at Texas (November 2) and Abu Dhabi (November 23).