[Team] Racing Point: What now for Force India

[Akrapovic]

They're also under completely different ownership now.

[Mike Bell]

Originally Posted by Akrapovic

They're also under completely different ownership now.

Quite, the ‘Jaguar Land Rover owned by Tata’ we have now is comparable by name only! Thank goodness.....

[chillibowl]

a controversial opinion no doubt, but i am more likely to buy a Jag or Rover now that it is owned by TATA.

[Moneyseeker]

Plenty would agree with you on that.

Originally Posted by chillibowl

a controversial opinion no doubt, but i am more likely to buy a Jag or Rover now that it is owned by TATA.

Sent from my SM-T580 using Tapatalk

[Adam43]

Also the best they’ve achieved in F1 was seventh in the championship. They’ve managed the dizzy heights of sixth in FE.

[BSchneiderFan]

Modern FE and the Formula 1 of 15 years ago are chalk and cheese.

[F1Guy]

Statement released by PJSC Uralkin, one of the bidders to attempt rescue of Force India from administration.

PJSC Uralkali ('Uralkali') as one of the bidders for Force India Formula One Team Limited ('Force India') hereby notes the following.

On July 27, 2018, upon the application of Brockstone Limited, one of the creditors of Force India, the High Court of Justice of Business and Property Courts of England and Wales issued an Administration order putting Force India into the Administration. The Administration is formal insolvency process during which activities, business and property of Force India are managed by the Joint Administrators: Geoffrey Paul Rowley and Jason Daniel Baker (both of FRP Advisory LLP) (the 'Administrators'). Under English law, the objectives of the Administrators' activities are to rescue Force India as a going concern or, if that is not possible, to achieve a better result for the company's stakeholders as a whole.

Uralkali assembled a team of professionals (including lawyers, accountants, insolvency experts and a Formula 1 specialist) to prepare and submit a competitive bid for Force India, which was led by Uralkali`s independent director Paul J. Ostling.

On August 3, 2018, Uralkali submitted a proposal comprising two options:

1) to rescue Force India as a going concern and to acquire a controlling stake in Force India to safeguard Force India from insolvency; and

2) to acquire the business and assets of Force India from the company in administration to enable the business to continue as a going concern in a new vehicle under new ownership.

Both options proposed sufficient funding to satisfy claims of all creditors in full and included an undertaking to provide significant working capital and new investment program over a 5-year term to ensure success of Force India.

Over the course of the bidding process and discussions with the Administrator, Uralkali insisted on a transparent and fair process to ensure equal opportunities for each bidder. In particular, Uralkali proposed that the bidding process be conducted by way of the submission in sealed envelopes of best and final bids to be opened in the presence of appointed representatives of the interested bidders. However, this proposal was rejected by the Administrators.

Moreover, on August 4, 2018 (a Saturday), the Administrator informed Uralkali that it would only consider the proposed rescue option if Uralkali provided, by 4pm on August 6, 2018 (i.e. in less than one business day), a binding agreement with Force India`s shareholders to acquire their stakes in Force India. The Administrator also acknowledged that the rescue option would require a consent from 13 Indian banks, who are advised by TLT LLP, pursuant to the freezing injunction imposed by the Business and Property Court of England and Wales relating to the shareholding in Force India. The Administrator set noon London time on August 17, 2018 as a deadline for obtaining such consent (i.e. only two weeks after the date of the Administrator`s letter). Despite Uralkali team's best efforts, the above deadlines were not achievable.

Upon our discussions with the shareholder representatives, it became apparent to us that the rescue option (at least on the conditions and within the timeframes put forward to us by the Administrator and consistent with our own code of integrity) was not achievable due to the complexity of legal structure, the extended period of time required to obtain consents of the 13 Indian banks and to obtain approval of a UK court for an amendment to the freezing injunction. Uralkali submitted a restated proposal on August 6, 2018 which, due to the above reasons, no longer offered a rescue option but set out a very attractive proposal to purchase business and assets of Force India on a going concern basis.

In addition, Urakali reiterated its commitment to offer a cash consideration sufficient to pay Force India`s creditors in full and to provide additional cash consideration which may be distributed by the administrator to Force India`s stakeholders in accordance with applicable laws. Uralkali also offered to assume a number of what appeared to be questionable last-minute claims against Force India communicated to Uralkali in the hours before the deadline for submission of the final bid.

Moreover, in the spirit of good faith cooperation and commitment to ensuring the future success of the team and financial stability for its employees following Uralkali`s acquisition of the Force India`s assets and business, Uralkali`s final bid contained proposals in respect of a development plan for the team and incentive plan for its employees.

Following the submission of our proposal, the administrator refused to engage with Uralkali team, did not reply to phone calls and emails and communicated with Uralkali in a single email following close of business on August 7, 2018 that it had entered into an exclusivity arrangement with another bidder regarding a proposal to rescue the company.

Despite expiration of the deadline set by the Administrator, no rescue plan was submitted to the court for approval, which confirmed Uralkali's view that the rescue option was not achievable in the timeline and under conditions proposed by the Administrator. Under these circumstances, it is surprising that no attempt was made by the Administrator to engage with Uralkali with respects to its bid for the assets and business of Force India.

Uralkali always emphasised its desire to bring transparency, proper corporate governance and financial stability to Force India. In this connection, Uralkali considers that the process conducted by the Administrator may not be in the best interests of Force India creditors and other stakeholders, and the sport in general.

PJSC Uralkin is owned by Force India’s development driver Nikita Mazepin's Father Dmitry Mazepin.

Sounds like sour grapes if you ask me.

[GTRMagic]

Send him Williams’ way.. what’s ANOTHER pay driver...

[bjohnsonsmith]

Originally Posted by GTRMagic

Send him Williams’ way.. what’s ANOTHER pay driver...

With the financial predicament Williams could be facing, that PJSC Uralkali money wouldn't go amiss.

[BSchneiderFan]

Mazepin is still absent one superlicence, so he won’t be in a race seat next year.

[F1Guy]

So this looks like it is heading to the courts then??

Mazepin seeking legal advice to take on the decision.

[Moneyseeker]

Originally Posted by bjohnsonsmith

With the financial predicament Williams could be facing, that PJSC Uralkali money wouldn't go amiss.

True, but with it would go the tiny bit of remaining credibility Williams still has.

[bjohnsonsmith]

Originally Posted by Moneyseeker

True, but with it would go the tiny bit of remaining credibility Williams still has.

Which is worse losing credibility or folding?

[chillibowl]

Originally Posted by bjohnsonsmith

Which is worse losing credibility or folding?

folding for sure.

i imagine as an employee of Force India or Williams i certainly wouldn't see a difference...you cant feed your family on credibility but you can on feed them on the credit provided by a rich benfactor.

its not like i thought FI lacked credibility as a race team because Mallya and Roy defrauded the Indian people and banking systems for hundreds of millions. nor did it ever really bother me that teams like Williams existed for decades on the sufferance of tobacco monies.

no doubt a sad admission to make, but when it comes to sports (f1 in particular), i try not to think to much about where the money comes from.

[S griffin]

Well some things get worse before they get better

[broadrun96]

Looks like they may NOT be allowed to race with the legal quibbling over what part of Force India was sold if Racefans.net had gotten good info, and they usually seen to be connected. It seems like they sold the assets only and as such the team may be viewed as new and have to apply for championship entry and would forfeit all rights to moneys earned previously. Could get interesting if they ended up with an F1 team that has no place in F1 after this is all done.

[BSchneiderFan]

It’s certainly looking more complicated than it was, and the team seem to be reliant on the goodwill of all the other teams, which could prove to be awkward. For the sake of the sport as a whole, let’s hope this can all be resolved and a viable two-car team is on the grid in Melbourne next March.

[broadrun96]

Originally Posted by BSchneiderFan

It’s certainly looking more complicated than it was, and the team seem to be reliant on the goodwill of all the other teams, which could prove to be awkward. For the sake of the sport as a whole, let’s hope this can all be resolved and a viable two-car team is on the grid in Melbourne next March.

You sir, are the eternal optimist. As long as Williams is still around they'll vote against anything that might cost them a spot in the finishing order and money. I can't blame them much but they have to play the long game and realize that $10 million "heritage" bonus isn't going to last forever and LM isn't going to look fondly on their blocking of keeping a team on the grid. There's more money and bargaining strength in picking up the phone to call ask see what Chase will give out over voting no. McLaren and Renault could be tough and they could be a bloc with shared engines and FI ahead of them in the standings.

[F1Guy]

Well... 'the team' had a name earlier this morning, but now, have become the F1 team with no name.

[Moneyseeker]

Originally Posted by broadrun96

You sir, are the eternal optimist. As long as Williams is still around they'll vote against anything that might cost them a spot in the finishing order and money. I can't blame them much but they have to play the long game and realize that $10 million "heritage" bonus isn't going to last forever and LM isn't going to look fondly on their blocking of keeping a team on the grid. There's more money and bargaining strength in picking up the phone to call ask see what Chase will give out over voting no. McLaren and Renault could be tough and they could be a bloc with shared engines and FI ahead of them in the standings.

Agreed, a mistake by Williams and simply makes them look desperate and mean spirited. As you say the heritage payment is quite likely to be dropped by Liberty in the 2021 payment structure, so I would be getting some brownie points with Liberty now...



Another point to add is that if teams are going to object to name changes and new owners in relation to FOM payments, then surely it makes their own teams less valuable?

[Moneyseeker]

Originally Posted by bjohnsonsmith

Which is worse losing credibility or folding?

Obviously folding, but I was making the point that once you lose credbility all the things that go with it - ability to attract top drivers, sponsors and people and this is a spiral.


Clearly Williams are in no way in trouble, but only a couple of bad years could seriously impact on them, they have a very 'heavy' business structure to maintain on what is back of the grid money and bear in mind that very low cost F1 teams did not survive, even with pay drivers and some FOM money.

[F1Guy]

Back on topic, more bad news. Bob Fernley has been fired. By Lawrence Stroll, apparently.

That is not a very smart move by Stroll.


edit: Link to the story below.

https://www.motorsport.com/f1/news/f...162679/?nrt=54

[F1Guy]

And more bad news. 'The team' is likely to lose all WCC points from the first 12 rounds. Apparently, it's part of a deal offered by Liberty Media, FOM and the other teams to keep 'the team' on the grid this weekend.


Things are going from bad to worse for these guys. Sad situation.

[Racer65]

Originally Posted by F1Guy

And more bad news. 'The team' is likely to lose all WCC points from the first 12 rounds. Apparently, it's part of a deal offered by Liberty Media, FOM and the other teams to keep 'the team' on the grid this weekend.


Things are going from bad to worse for these guys. Sad situation.

Can't see any other way they could do it to be honest. It has to be a new team as they don't own the entry so it would be nonsensical for that team to get Force Indias points.

[GTRMagic]

‘Sahara’ fell off the fb page branding also...