Smith & Williamson has been appointed as administrators to Caterham Sports Ltd (CSL), the company that designs and builds cars for the Caterham Formula 1 team which has filed for insolvency, putting hundreds of jobs at risk
CSL manufactures cars and provides services for 1 Malaysia Racing Team (1MRT), the Malaysian company which operates the Caterham F1 team in the Formula 1 World Championship. It is based at Leafield in Oxfordshire, an area which is home to many leading motor racing companies.
Despite the administration, the Caterham F1 team, however, are expected to compete in the remaining three grands prix of the season in the US, Brazil and Abu Dhabi. The team is currently in last place with zero points this season.
Smith & Williamson partner and joint administrator Finbarr O’Connell said: ’Positive discussions were held between the administrators and the team manager, Manfredi Ravetto, and also with the financial backers of the team on Friday 17 October.
‘It is hoped these will lead to a financially acceptable arrangement for the continuation of the relationship between the company (CSL) and the F1 team. If a financially acceptable arrangement cannot be agreed between the administrators and the Caterham F1 Team, the administrators will then enter into dialogue with other interested parties with regard to a sale of the business and assets of the company.’
For the time being, employees of Caterham Sports Ltd have been transferred to 1MRT.
Around 200 jobs are at risk, while up to £20m is owed to external suppliers.
