Caterham F1 team in limbo

Formula One supremo Bernie Ecclestone has stepped into the crisis engulfing the beleaguered Caterham team after a row over ownership threatened its future in the sport.

The new owners of the backmarkers are locked in a war of words with previous chief Tony Fernandes, threatening the team’s appearance at the United States Grand Prix on November 2.

“We’re trying to help in any way we can, which we do with anybody that has run into a bit of difficulty,” Ecclestone told the BBC.

“All I know is what I’ve been told. Not too sure it’s all true either. It is a little bit too complicated to be able to say anything with any real knowledge.”

On Thursday, the combative Fernandes accused the consortium of Swiss and Middle Eastern businessmen who took charge of the outfit in June of failing to honour their obligations.

His accusation came just 24 hours after Engavest, which represents the group, threatened legal action against the Malaysian.

The consortium claimed there has been no transfer of shares that would make their ownership of the team legally binding and that, as a consequence, Fernandes is again in charge.

But Fernandes hit back.

“In June 2014, I decided, together with my co-shareholders, to sell my stake in the Caterham F1 team,” he claimed in a statement issued in his name and on behalf and the Caterham Group, of which he is co-chairman.

“We agreed in good faith to sell the shares to a Swiss company named Engavest on the basis that Engavest undertook to pay all of the existing and future creditors, including the staff.

“Sadly, Engavest has failed to comply with any of the conditions in the agreement and Caterham Sports Ltd (the UK operating company of the F1 team) has had to be put into administration by the bank, with large sums owing to numerous creditors.

“Our agreement with Engavest was very clear: there was no legal obligation to transfer the shares to them unless certain conditions — which included paying creditors — were met.”

Former F1 team boss Colin Kolles, working as an adviser to Engavest, disputes Fernandes’ claims.

“You have to understand this deal was done on full disclosure basis,” he said.

“All the conditions and precedents have been fulfilled by the buyer. We have our position, and there is nothing more to say. But the administrators, they are not seeing the clear picture.”

Meanwhile, around 200 staff at the Caterham F1 base in England would likely be out of work should the team fold.

Administrators closed the doors on the factory on Thursday with the cars due to be used for the race in the US impounded just 48 hours ahead of their scheduled flight to Austin, Texas.

Kolles claims the cars belong to 1MRT, the F1 entry holder and company behind the team, and not Caterham Sports Ltd (CSL), who make and supply the cars and equipment.

London-based accountancy firm Smith & Williamson disagree, which is why the doors to the factory have been closed and staff locked out.

“Everybody is prepared to go to Austin. The problem is if the administrators are not changing their mind it is difficult,” said Kolles.

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