Caterham F1 owners could quit team

By on Wednesday, October 22, 2014
Caterham F1 Team

Caterham F1 Team

Caterham's new owners have warned they could quit the Formula 1 team and have threatened to take legal action against Tony Fernandes after they claimed that the shares have not been transferred.

It was announced in July that Fernandes was selling his squad to a group of Swiss and Middle Eastern investors but the new owners claim that the current situation, in which administrators have been called in to Formula 1 supplier Caterham Sports Limited, has had a 'devastating effect' on the Formula 1 team.

Caterham released a statement late on Wednesday in an attempt to clarify the situation at the Leafield-based squad and express their disdain at Fernandes's actions.

"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," read a statement released by the 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 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."


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