- Caterham
Caterham F1 bosses could quit over ownership row
Caterham's current owners have threatened to withdraw their management and take legal action against previous owner Tony Fernandes after claiming the shares they purchased earlier this year have not been transferred.
This week Caterham Sports Limited - the company that manufactures the team's cars - went into administration, with reports the race cars might not be released from the factory in time for next weekend's US Grand Prix. After meeting with the administrators on Wednesday, the current owners of 1Malaysia Racing Team, which holds the F1 entry for the team, said the administrator's appointment had had "devastating effects" on its operations.
The consortium that bought the team from Fernandes, known as Engavest SA, is being advised by ex-HRT team boss Colin Kolles and has been running the operation since a sale was agreed before the British Grand Prix. However, they now claim Fernandes and the previous owners did not transfer the shares as agreed, leaving them to run and fund a team they do not legally own.
"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," read Caterham F1 Team's statement.
"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 statement adds that Caterham Sports Limited going into administration was nothing to do with the new owners of the F1 team, but that it could now derail its plans to finish the season.
"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.
"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."
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