[Team] Racing Point: What now for Force India

[peebee2]

I bet of the supposed £30m cash injection that £0 actually existed...

[BSchneiderFan]

Zero chance of it reverting to Jordan, unless EJ were involved in some kind of buyout, and that’s as it should be. Times move on. Don’t expect Mercedes to rename the team Tyrrell.

[F1Guy]

Originally Posted by peebee2

I bet of the supposed £30m cash injection that £0 actually existed...

I'm with you on this. I think the Rich Energy bid was all just a PR stunt for the company. Wonder how many people are aware of this little known energy drink outside of Britain now?

We could maybe do a quick survey of this forum asking how many knew of this drink before the Force India bid? I'll go first.

Q: Have you heard of Rich Energy before the FI bid?
A: Yes, I've seen it in stores in US and Britain.

[E.B]

Originally Posted by BSchneiderFan

Zero chance of it reverting to Jordan, unless EJ were involved in some kind of buyout, and that’s as it should be. Times move on. Don’t expect Mercedes to rename the team Tyrrell.

Agree totally.

[S griffin]

I hope someone saves Force India, we can’t afford to lose another team.

And you mention Tyrrell, Ross Brawn actually thought of calling his team that when they bought out Honda, before settling on Brawn

[F1Guy]

The administrators in charge are FRP Advisory LLP. They have history in F1. HERE is the most recent case they were in charge of.


If the team survives into the next race, yet alone 2019, it maybe looking for two new drivers for 2019. Ocon is apparently off to Renault, and Perez to HAAS. So where does that leave Sainz and Grosjean?

[Tourer]

Originally Posted by BSchneiderFan

Zero chance of it reverting to Jordan, unless EJ were involved in some kind of buyout, and that’s as it should be. Times move on. Don’t expect Mercedes to rename the team Tyrrell.

You're probably right - although almost any name would be an improvement on Force India, just seems a bit try-hard but maybe that's just me.

[peebee2]

Originally Posted by F1Guy

The administrators in charge are FRP Advisory LLP. They have history in F1. HERE is the most recent case they were in charge of.


If the team survives into the next race, yet alone 2019, it maybe looking for two new drivers for 2019. Ocon is apparently off to Renault, and Perez to HAAS. So where does that leave Sainz and Grosjean?

Out of F1? Both are borderline worthy, at the very best, though maybe Sainz might get one final chance somewhere.

[GTRMagic]

4 known players

Wonder if Mr Andretti has the backing to do this?

[Akrapovic]

I think the way it's been reported is a little unfair. Saying that Perez and Mercedes caused it. Well..no, Force India caused it by not paying them. It's not trivial to be in this situation, so it's not like Force India made one late payment to Perez and he decided to shut them down.

[Adam43]

Good point. As usual lazy journalism.

[BSchneiderFan]

Originally Posted by Tourer

You're probably right - although almost any name would be an improvement on Force India, just seems a bit try-hard but maybe that's just me.

It made sense when Mallya had a bevy of Indian sponsors and there was an Indian GP (and would have done even more so if he’d put Karthikayan or Chandhok in one of the seats).

[GTRMagic]

Originally Posted by Akrapovic

I think the way it's been reported is a little unfair. Saying that Perez and Mercedes caused it. Well..no, Force India caused it by not paying them. It's not trivial to be in this situation, so it's not like Force India made one late payment to Perez and he decided to shut them down.

Arguably a more elegant solution than with Arrows back in the day having their ECUs remain in the Cosworth transport until contributions to allegedly outstanding debts were completed.

It’s not the big end of town in the creditor space to be concerned with, it’s the smaller contractors and suppliers who may not have seen much in the way of payments for a while, and perhaps then only replacing an old debt with a new, current one for ongoing work.

[Racer65]

Originally Posted by peebee2

Out of F1? Both are borderline worthy, at the very best, though maybe Sainz might get one final chance somewhere.

Yep, see borderline worthy drivers qualify 5th for a GP all the time....

[Mike Harte]

Originally Posted by Akrapovic

I think the way it's been reported is a little unfair. Saying that Perez and Mercedes caused it. Well..no, Force India caused it by not paying them. It's not trivial to be in this situation, so it's not like Force India made one late payment to Perez and he decided to shut them down.

Very unfair, but also untrue.


The proceedings were initiated by HMRC after FI failed to pay the tax, VAT or NICs that were long overdue.


It was only after the hearing was scheduled for Wednesday that FI eventually finally settled with HMRC, and it was only at that point, when Perez and Mercedes still hadn't received their monies that they took over as the Complainants (on Wednesday afternoon, I believe).



I am only surprised that this has taken so long to come to a head, considering that both the owners are in severe financial poo. And how embarrassing for Mallya that his last remaining status symbol has been grabbed from his grasp.

[chillibowl]

not familiar with all the ins and outs of administration in the UK, so might be of base with this question.

but does administration afford Mallya (and other shareholders) more protection from FI creditors of which they might be one either through their shareholder contributions or loans they might have made to Force India via another corporate entity?

[Mike Harte]

If you are thinking about the USA's Chapter 11, the UK doesn't have a real equivalent. At the moment it is would seem as though it is unclear what the true financial situation is with FI, but I would believe it to be a mess.


From what I have read in the recent past, a considerable amount of financial backing has come from Mallya's associated companies in India, and, according to the reports, not necessarily in a commercially legal manner. There would appear, allegedly, to have been payments made between related companies that shouldn't have been. And this is why the Indian authorities are trying to extradite Mallya so that they can question him about the collapse of his business interests, especially Kingfisher Airlines. That is why his best chum Roy from Sahara is languishing in prison at the moment.


In fact, Mallya's next extradition hearing is due shortly in London and it will be interesting to see whether he will be able to afford to keep his very, very expensive Queen's Counsel representing him in court. Now that the financial writing is on the wall, I would expect that his legal team will demand that payment is made up front rather than on credit.

[chillibowl]

appreciate the response. thanks Mike!

[Mike Harte]

Originally Posted by F1Guy

Rich Energy Racing not very happy.


Rich Energy: Despite a last minute £30m cash injection from Rich Energy the court has today put Force India F1 into administration. A tragic and avoidable outcome orchestrated by Mercedes AMG, Sergio Perez, Julian Jakobi and BWT. Disgraceful.

Sergio Perez was lead petitioner for administration with a claim for 4m and Mercedes AMG were largest claimant at court today. So (incredibly) the team's driver & engine supplier were key in putting it under in concerted effort to force administration, and sabotage shareholders

and

Originally Posted by peebee2

I bet of the supposed £30m cash injection that £0 actually existed...

The judge, on Friday, was fairly scathing about Rich Energy, and was a) unconvinced that the finance was available, and b) considered what they were offering was totally inadequate for the requirements of FI.


Of the £30 million they proposed stumping up, half in 2018 and the rest in 2019, about half was already owed to just Perez and Mercedes.

[GTRMagic]

Feeling pressurised?

[EffectiveSprinkles]

It seems to me Sergio had no choice here.

[Skam85]

While these are all very provocative and scary words, this is the best thing that could happen to Force India in its current situation.

[BSchneiderFan]

Yes, the way he tells it (and he seems like an honest enough guy), Pérez has actually helped the team by getting them into administration. I just hope a buyer or buyers can be found who will a) run the team as a going concern, and b) bring new investment.

[wolfhound]

It seems like the problem at FI was that the current owners were not prepared to sell at the money being offered but are not in a position to bring more cash into the team. There appears to be a number of interested parties so the administrators should be able to find somebody suitable.

https://www.motorsportweek.com/joesaward/id/00281

http://classic.autosport.com/news/report.php/id/137712

[Richard C]

Originally Posted by BSchneiderFan

Yes, the way he tells it (and he seems like an honest enough guy), Pérez has actually helped the team by getting them into administration. I just hope a buyer or buyers can be found who will a) run the team as a going concern, and b) bring new investment.

Agree with all of the above. I don’t think Perez is the bad guy here.

Richard