The Force India Formula 1 team is to exit administration in the coming weeks after a deal was reached between senior management and a consortium of investors, led by Lawrence Stroll, to secure the future of the team.
The future of the Silverstone-based operation had been under threat for several months amid the ongoing personal setbacks encountered by long-term co-owner Vijay Mallya, with several interested parties having lined up to express interest.
Under guidance from advisors, and senior team members, Sergio Perez and his manager, backed by sponsor BWT and engine supplier Mercedes, triggered legal action in a bid to accelerate a takeover, and Force India entered administration late last month.
Administrators FRP Advisory were appointed to find a buyer and on Tuesday confirmed a credible party had emerged and a deal had been agreed.
A consortium of businessmen, led by by billionaire Stroll, the father of Williams racer Lance, has been gathered, with the process aided by Force India's Chief Operating Officer Otmar Szafnauer and other members of the squad's senior management.
The investors also include entrepreneur Andre Desmarais, Jonathan Dudman of Monaco Sports and Management, fashion business leader John Idol, telecommunications investor John McCaw Jr and financial expert Michael de Picciotto, plus Stroll's business partner Silas Chou.
A statement confirmed the team would exit administration, with all debts repaid, and all 405 employees retained.
"Under the terms of an exclusivity agreement signed today, the company will be able to exit from administration, the creditors will be paid in full, all jobs will be secured, and ongoing funding guaranteed," read a statement.
"The swift turnaround of fortunes for the F1 team underlines the strength and depth of the company which finished fourth in last year’s Constructors’ table.
"Force India’s highly-skilled workforce, responsible for its consistent level of performance in recent years, is a key reason why the consortium saw this deal as a great opportunity."
Szafnauer expressed his delight at the development, having played a key role in the process.
"This outcome secures the future of the Force India team in Formula 1 and will allow our team of racers to compete to our full potential," said Szafnauer.
"I am delighted that we have the support of a consortium of investors who believe in us as a team and who see the considerable business potential that Force India has within F1 now and in the future.
"At Force India, our expertise and commitment has meant that we have always punched above our weight and this new investment ensures that we have a bright future ahead of us.
"I also would like to thank Vijay [Mallya], the Sahara Group and the Mol family for all of their support and taking the team as far as their circumstances would allow."
Joint administrator Geoff Rowley added that funding would be made available to the team immediately, with "significantly more" made available in the coming weeks.
"It is rare that a company can be rescued and returned to a position of solvency," he explained. "The quality of the various interested parties has been impressive and required careful consideration as the administration has progressed.
"Having followed a robust process, in the end we were left with a highly-credible offer to save the company and restore solvency.
"All creditors will be paid in full, all jobs will be preserved, and the team will have significant funding to invest in its future.
"Funding to support the team will be made available from today, and significantly more will be available once the company emerges from administration which we expect within the next two to three weeks."
The team will compete at the Belgian Grand Prix when the F1 season resumes in late August.
The takeover is crucial for the team's prospects in this year's championship, with previous financial issues having caused upgrades to be postponed, hurting its chances of battling rivals in the closely-matched midfield.
Force India currently holds sixth place in the standings and fields Perez and Mercedes-backed youngster Esteban Ocon.
The deal naturally brings the future of 19-year-old Stroll into the spotlight, with the Williams team for which he currently competes having slumped to last in this year's Constructors' Championship, with just a single points finish.
Stroll Sr. has been an influential factor in the 2016 F3 champion's career and has backed Williams since his son graduated to a race seat at the start of 2017.
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