0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Formula One Car Manufacturer Caterham Sports Enters Administration

Written by: Keith Tully

Published: 22nd October 2014

Signing paperCaterham Sports Limited, a manufacturer of cars for the Formula One racing team Caterham F1, has entered administration and put hundreds of jobs at risk in doing so.

The business based in Leafield, Oxfordshire, is operated by 1 Malaysia Racing Team (1MRT) and currently employs 200 people whose jobs could be impacted by the situation – administrators say.

As it stands, employees of Caterham have been transferred to 1MRT.

It’s understood that Caterham Sports owes in the region of £20 million to external suppliers but the F1 team is apparently keen to continue operating as a competitive motor racing outfit. The team’s cars have been struggling to keep pace with their rivals throughout the current season in the Formula One drivers’ and constructors’ championships.

The racing team was formerly known as Lotus Racing and has failed to win a single point in the Formula One competition over the past five years. This poor return is thought to have prompted the AirAsia business tycoon and owner of Queens Park Rangers Football Club, Tony Fernandes, to sell the business to a consortium of investors earlier this year.

The new owners, who are from Switzerland and the Middle East respectively, are believed to have struggled to finance the team they bought or to make it any more competitive.

“Clearly, the parties who bought the business from Tony Fernandes have been unable to fund this company,” said Finbar O’Connell, administrator from Smith & Williamson.

 “When it comes to F1 teams, you are normally dealing with one figurehead who is very much in the public eye. [However] the current owners of the Caterham Formula One team are not completely clear to me yet,” he said.

O’Connell went on to explain that Constantin Cojocar, a Romanian businessman has been acting as the sole director and shareholder of Caterham Sports since July 2014 when the company was sold.

The administrators said in an official statement: “Mr Cojocar, former professional footballer and football coach, has indicated in court papers that there was an intention that his associates would provide funding of £2m per week which would be used to pay the company’s creditors but that, unfortunately, the money promised by his backers did not arrive.”

Smith & Williamson said that its administrators intend to continue working towards maximising the value of cash that can be raised through Caterham Sports Limited and its assets in order to pay as many of the company’s creditors as possible. 

*Image used under the Creative Commons license. Owner: Kevin Rodriguez Ortiz

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners