Caterham F1 Team’s Future In Jeopardy

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Caterham Formula One car

Caterham Formula One car

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The Caterham F1 Team is currently on shaky ground following news Caterham Sports Limited (CSL), an entity that builds the actual cars for the team, is in administration and its administrator refusing to release the cars for transport to Austin, Texas for the upcoming Formula One United States Grand Prix.

It turns out CSL hasn’t received funding from Caterham’s new owner Engavest, a consortium of Swiss and Middle Eastern investors. The reason, according to a statement on the Caterham F1 Team’s website, is that the team’s former owner, a group of investors led by Malaysian businessman Tony Fernandes, hasn’t transfered its shares in the team to Engavest, thus Engavest has been reluctant to pay the bills of a team it doesn’t have title too.

Fernandes has hit back claiming Engavest hasn’t paid for the shares yet, posting on Twitter: "If you buy something you should pay for it. Quite simple." Fernandes has attempted to distance himself from the Caterham F1 Team while he continues to run the Caterham road car business, releasing a statement earlier this month that he no longer had any connection with the Caterham F1 Team, based in Leafield, England.

Engavest has been running the Caterham F1 Team since the announced sale back in July. It says it’s now forced to explore all its options including the withdrawal of its management team.

CSL has around 200 employees and a debt of £20 million (approximately $32 million), which is owed mostly to external suppliers. Negotiations between the parties concerned are currently taking place. The administrator said if no deal can be reached the assets of CSL will need to be sold.

The Caterham F1 Team is currently tied for last place with Sauber in the 2014 Constructors’ Championship. Both teams have zero points.

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