Caterham’s new ‘owners’ have threatened to quit the team and the sport after revealing that former-owner Tony Fernandes has failed to meet his obligations as previously agreed.
A strongly-worded statement released on Wednesday revealed that the Malaysian businessman is in fact still the owner after he failed to transfer shares in the company to its new management.
The team has been run in “good faith” since the deal was announced, with the new management believing, as per an agreement with Fernandes, that the shares would be transferred and he would exit the outfit altogether.
That hasn’t happened according to Caterham and they are therefore powerless to resolve the recent issues surrounding the bankruptcy of Caterham Sports Limited (CSL).
“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 statement adds that it is exploring all options including withdrawing from the sale of the team, whilst it is also pursuing legal action against Fernandes and other involved parties.
“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.”
The news could see Caterham miss the United States Grand Prix in just a couple of weeks time. Should it miss the remaining three races on the calendar, it will lose all rights to its F1 licence and will therefore be forced out of the sport.
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