Caterham: New bosses threaten withdrawal

Speedcafe.com

Thursday 23rd October, 2014 - 8:47am

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Caterham F1 team's new bosses threaten to quit

Caterham F1 team’s new bosses threaten to quit

The Caterham F1 team has been plunged into further turmoil with its new management team threatening to pull out.

The situation has reached a new flashpoint over allegations that the squad’s former boss Tony Fernandes has not honoured agreements with the new buyer, Engavest SA.

The news comes a few weeks after the Sheriff’s Office published a statement that it had seized goods from the Leafield team base.

Further conjecture from the administrators in the media suggested there was a chance that the team’s cars would not be released in time for the US Grand Prix in Austin, Texas, in 10 days or workers would be forced from the factory.

A statement released by the Caterham F1 team said: “After three months of operating the Caterham F1 Team in good faith, the buyer is now forced to explore all its options including the withdrawal of its management team.

“Lawyers have been instructed by the Buyer to bring all necessary claims against all parties, including Mr Fernandes who, as an owner, will run the F1 operation.

“On 29 June 2014, Caterham Enterprises Ltd, Caterham (UK) Ltd and Sheikh Mohamed Nasarudin (Seller) and their shareholders Tony Fernandes and Datuk Kamarudin Bin Meranun entered into a Sale and Purchase Agreement (SPA) with Engavest SA (Buyer) with regards to 1Malaysia Racing Team Sdn Bhd/Caterham F1 Team.

“Since the date of the agreement, the Seller has refused to comply with its legal obligations to transfer their shares to the Buyer.

“The Buyer has been left in the invidious position of funding the team without having legal title to the team it had bought.

“This is in total contradiction to the Seller’s press release of 3 October 2014 which stated that Mr Fernandes and his Caterham Group had no longer any connection with the Caterham F1 Team.

“The administrators of Caterham Sports Limited have been appointed on behalf of Export-Import Bank of Malaysia Berhad (Exim), a creditor of Mr Fernandes and the Caterham Group.

“The Buyer has no connection with Exim. Caterham Sports Ltd was a supplier company to the Caterham F1 Team. Very regrettably, the administrators’ appointment has had devastating effects on the F1 Team’s activities.

“Since their appointment, the administrators have released various press statements which have been severely detrimental to the management of the Caterham F1 team.”