Administrators have been handed full management responsibility for the Caterham Formula One team in a bid to find a new buyer. The iInsolvency specialists Smith & Williamson closed the team factory in Leafield, Oxfordshire, on Thursday. The firm had already been working on behalf of the creditors of Caterham Sports Ltd, a company which makes and supplies cars to 1MRT, the entity which owns the licence to race in Formula One.
But now administrator Finnbarr O’Connell has been placed in charge of 1MRT as well, with his overwhelming priority being to continue team operations in the short term with a view to finding a buyer for the beleaguered marque.
O’Connell told Press Association Sport: “This is a very cash-strapped team.
“I have been approached by people who are interested, so my immediate position is to further the negotiations with them as quickly as possible in order that somebody with proper financial backing can hopefully take over the team.”
Asked if he was now essentially the Caterham team principal, O’Connell added: “Yes, I think that is the case.
“I did ask 1MRT on Thursday if they would be willing to do this [hand over management responsibilities] in order for me to try and find a new financial backer for the team, so this is their reaction to my request. We’re just working on all of that at the moment.”
O’Connell admitted he did not know if he would still be team principal for the United States Grand Prix in Austin next weekend.
“I don’t rule anything out,” he said.
“I know there have been technical difficulties with the car and I’m just getting reports back on those to see if those technical difficulties have been dealt with.
“You will know one of the drivers (Kamui Kobayashi) complained about technical difficulties with the car and feared for his safety.
“So we are looking into those because clearly the cars have to be safe before they can be driven, so that’s the main issue I have at the moment.”
Asked if he would now reopen the factory, O’Connell added: “I need to talk to the creditors, sponsors, funders, so I will be sending a message to all the employees of 1MRT.
“Our objective is to get this team racing on a proper financial standing, and hopefully if a funder comes through, this team can run again.
“I have spoken to people who are interested in taking over the Leafield factory, and the staff being employed there.
“It’s early days, but there is a major hope that all of that can happen.”
Caterham F1 confirmed the news in a statement of its own which read: “Following a request of Thursday evening at 21.55hrs CET from Caterham Sports Limited’s administrators and the legal advisors of Mr Tony Fernandes’ related EXIM Bank, representatives of 1MRT/Caterham F1 Team have agreed, with all rights reserved, to hand over management of the Caterham F1 Team to the administrator Mr Finbarr O’Connell in the higher interest of allowing the team to continue operating and preparing for the next events.”
The past and present owners of Caterham have been engaged in a dispute over the last week leading up to Friday’s news.
Malaysian entrepreneur Tony Fernandes claims he has yet to be paid for the shares of ownership, while the buyers in a consortium of Swiss and Middle Eastern businessmen who took over Caterham at the end of June insist everything has been done accordingly.