the end of prost as we know it?

[PoweredByHonda]

I just saw on www.f1live.com that Prost GP will file for Bankruptcy thursday
"Prost to file for bankruptcy
The end of an era? [21/11/01 - 22:22]




Alain Prost

t news just to hand, it appears as if the Prost Grand Prix team will be officially filing for bankruptcy tomorrow (Thursday) with the bankruptcy court of Les Yvelines, seeing Alain Prost wind up his French Grand Prix team after suffering a devastating season.

The four-time world champion's team had a terrible year, winning just four points, and are saddled with 30.49million euros (27million US dollars) of debts, French TV channel LCI reported. To make matters worse, the French outfit had also been hit by the loss of several sponsors and the 46-year-old had been alerted by his lawyers in mid- September about the mounting financial crisis.

“Prost renounces due to lack of funds,” announced the station. "Alain Prost has informed his 300 employees that he was going to file for bankruptcy of his Team on Thursday."

Prost, winner of 51 Grand Prix, had held talks with Saudi prince Al Waleed Bin Tahal over a period of months but nothing materialised. Prost's team could not immediately be contacted for comment.

The move has been speculated for some months now and the French outfit's drivers from 2001, Luciano Burti and Heinz-Harald Frentzen have already left the team, with Burti's move to Ferrari confirmed and Frentzen's announcement at Arrows seemingly just a matter of time.

Latest 15 stories, here...Sauber are right on...Burti's recruitment reasons...Ralf and Juan Pablo to make an...Alesi gets new lease of life...Prost to file for bankruptcy...Motor racing confirms ban on...Zanardi wants to return to...No news before the end of the...Is it between Marques and...New luxury homeBadoer pleased to share the...Rest and relaxation in...Sir Frank is closer to...Jonathan Cochet is not...Diniz and Renault join forces...
R.S.
Source AFP "

Poor alain... the had some good years.. 97 in particular, with Olivier panis....

[AndyF]

A great shame - but at least we have Toyota next year.

[Nicholas]

A shame really, but it was fairly obvious they were on the way out. All those failed sponsorship deals (remember the Camel deal which was TBA around the time of the Canadian GP?) substantial debts and no engine deal. That rumour a few days ago about Interbrew got my hopes up so I was pretty disappointed to hear this.

So, 11 teams on the grid for next year.

It makes interesting timing if VW does indeed decide to enter F1 with Audi...

NO-ONE knows what will be discussed at the meeting of the Volkswagen supervisory board on Friday but what has been revealed is that this will decide on whether to accept the chairman designate Bernd Pischetsrieder's proposals for the revamping of the company's automobile brands. More importantly, however, it will vote on what investments are to be made in the course of the next five years. If the company is going to get involved in F1 such a program would, most likely, be decided at this meeting.

Ripped off from Grandprix.com

[Stephen Green]

It's official. Prost Grand Prix was placed into receivership yesterday by a court in Versailles.

The French constructor will be monitored by the court for a period of six months. Judge Frank Michel has been named the administrator.

[Nicholas]

BTW- Prost has announced a press conference at 15.30 today, at Guyancourt.

Perhaps there is a possibility of Interbrew buying out Prost...? Maybe.

[Stephen Green]

I can't see Interbrew wanting to own an F1 team somehow. Sponsorship is one thing but that wouldn't fit into any of their strategies.

[Maxmil]

Originally posted by Stephen Green
It's official. Prost Grand Prix was placed into receivership yesterday by a court in Versailles.
The French constructor will be monitored by the court for a period of six months. Judge Frank Michel has been named the administrator.

. . . Prost doesn't show up for the first race next year? The French Bankruptcy Court - in my experience - moves with glacial speed. The six months usually stretches out into a year or more. For instance, the employees have all sorts of rights to be looked after. It seems inconceivable to me that any new owner could work up a bid for the team's assets and get a car to the starting line by next March. The real question is; How long before the "Prost" team loses it's right to race if it doesn't field cars? Aren't they required to show up for all seventeen races?

(Cool new Smilies this morning.)

[Stephen Green]

I seem to recall that the FIA have some form of 'fine' system? If so, surely it would be counter productive to someone who is already in financial trouble *shrugs*

[Suzy]

I have to say that I feel very sorry for Alain Prost. He's watched his dream disappear in front of him. I bet he's looking back now and just saying "If only...". I know the world is full of things like that but he wanted to create a French super-team. And remember how well Prost did in 1997?

I hope some arrangement can be worked out - and I also hope that Alain didn't pump too much of his personal money into buying/trying to save Prost. There have been enough people affected by this sorry state already: mechanics, engineers, sponsors, Alain, and anybody else who has supported Prost throughout the years.

[kuchi]

Yes, it's a shame, but it seems there was no other solution. All this year it was clear that prost was in need of sponsorship, but it never camed. I feel sorry for Alain.

[Stephen Green]

Sadly Suzy I think it was the idea of a French super team that was the downfall. Apart from Ferrari, how many other teams can really say they representing one country? Even Ferrari employ Germans, British, South Africans and Brazilians to achieve their goals. Had Alain stuck with the more traditional approach then things may just have turned out better for him.

Like you I think it's a sad day and I too hope he hasn't pumped too much of his own money into the team.

[paulzinho]

Such a shame but does this mean they are DEFINITELY out of next year?

[Glen]

Does this mean that HHF has no drive? Or, does it mean that Prost can't keep him away from Arrows?

[rdjones]

This just in from F1-live.com

Under the authority of the Versailles Trade Court, Prost Grand Prix, the French Formula One team, is going to fight to be at the start of the 2002 World Championship in Melbourne Australia on March the third.

Prost Grand Prix: The French Project

In 1997, Alain Prost, four-time F1 world champion, accepted the challenge to build a French team by creating his own company: Prost Grand Prix. It was a huge endeavour, but the staff's motivation as well as the partners' commitment to success was limitless. Over four years, “les Bleus” as they are commonly called in France, built for themselves a place in the closed circle of F1 teams and gathered all technical, human and financial means necessary to a promising start.

As one of the young teams competing in this high-level environment of international media magnitude, Prost Grand Prix was confronted with the natural consequences of its learning curve. But, despite the difficulties they had to deal with, particularly during the 2000 season, the French team never ceased to build and consolidate and today it has reached maturity.

This season, strengthened by a first-class collaboration from motorist Ferrari and a three-year experience, Prost Grand Prix raced for points. Despite a fragile financial context, the team was able to fight through the end of the Championship finishing in 9th place. This result not only proves, if need be, the team's legitimacy, but also confirms their reliability.

Alain Prost

More than ever determined to hold their place in the F1 World Championship to start on March 3rd in Melbourne (Australia), Alain Prost and his 250 teammates have already focused all their energy on conceiving and building the APO5, the car that will defend the colours of the team in 2002.

The need to refinance:

During its first three years of activity, Prost Grand Prix, showed positive results the first two, and was close to breakeven in the third year. The unfavourable general economic context of 2001, added to the relatively poor results of the team during the 2000 season, had a severe impact on the company's budget balance. Nevertheless, the significant improvement of the team's sports results in 2001, plus the support of several partners and sponsors, and Ferrari's trust, allow Prost Grand Prix to already count on a significant part of its 2002 operating budget.

The initiation of the “Procédure Judiciaire” (a French judiciary process led by Trade Courts aiming at straightening up companies in financial difficulties), should give potential investors and sponsors the legal and financial security that will guarantee the company's future.

Prost Grand Prix is a company owned directly or indirectly by Alain Prost (51.3%), the Diniz Family (40%), LV Capital (5.8%), and Yahoo (2.9%). Prost Development, the Financial Holding, controlled by Alain Prost (85%), is also holder of a shareholders current account of US$ 52 million in Prost Grand Prix's balance sheet.

[Nicholas]

As far as I know, Alain Prost is still a multi-millionaire, so he should be okay. He has also shown confidence in HHF:

"Heinz-Harald has been very patient," he said. "He has waited and waited. He has confidence in the team and we hope he will be able to continue with us."

[Mekola]

Where are now the French enterprises like Elf, Total, Seita, Peugeot, LOTO ... ?
Perhaps the support to Prost declined with the appear of Renault team, but it's an irony that Renault team don't have any French driver!

[f1manoz]

It's a shame this has happened, but as soon as Prost lost his major sponsor and engine supplier, then had to pay heavily for Ferrari engines, something would have to give.

Somebody asked why did they do so well in 1997. The reason is that Prost inherited the team during the off-season, so Prost hadn't the chance to come in and change too much. Plus the fact Bridgestone were in their first year and Panis was in top form contributed to those results.

However, with the new rules, Prost changed much around, bringing in Peugeot plus a new designer, Dudot, who had little idea about designing cars, and the team plummeted and have yet to regain the form of 1997, and with the news of the team bankrupcy, will now be fighting to even make the grid next year.

As for French interests, they'd all be going to Renault now.