by TF1T Staff  |    |   0  |  22 October 2014

Caterham at risk as manufacturer goes bankrupt


Caterham Sports Limited, which manufactures the Caterham F1 Team's Formula 1 cars, has gone into administration, putting hundreds of jobs at risk.

Whilst the team itself insists this is nothing to worry about, it's likely to have some impact on how it operates, especially heading into next season.

Though they share a name and a base in Leafield, the two companies are completely separate of one another.

The F1 team and its all-important licence, are owned by 1 Malaysia Racing Team (1MRT). Caterham Sports Limited (CSL) is a separate company, though it is contracted by 1MRT to build its cars and upgrades.

With the latter having gone bankrupt, owing upwards of £20 million to external suppliers according to administrator Finbarr O'Connell, it could delay Caterham's 2015 plans unless a deal can be brokered.

The situation is already somewhat resolved after employees of CSL were transferred to 1MRT prior to the bankruptcy ruling, however if no agreement can be reached between the two parties to resolve the debt, the F1 team may be forced out of its Leafield base which is owned by both companies.

"I'm trying to enter into an arrangement with 1MRT whereby they [the employees] can stay here at the Leafield site," explained administrator O'Connell.

"If I can reach an agreement with them then hopefully jobs are not at risk," he added. "If I can't reach an agreement then all those employees, 1MRT will have to decide what to do with them, but they won't be at the Leafield site."

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