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Creditors to lose 23m on Caterham

NEWS STORY
21/05/2018

Administrators for the collapsed F1 team Caterham have admitted that there are insufficient funds to pay the various creditors following the team's collapse in 2014.

In 2010, three teams entered F1 enticed by the promise of a budget cap and a more level playing field (sound familiar). Among them was Tony Fernandes' Lotus Racing.

Legal battles with Proton, the parent company of Group Lotus, saw Fernandes changes the name of the team to Team Lotus before changing again to Caterham for the 2012 season after the Malaysian businessman bought Caterham Cars.

In its various guises, over 5 seasons and despite switching from Cosworth engines to Renault, the team failed to score a single point.

In mid-2014, its final season, Fernandes sold the team to a mysterious consortium of Swiss and Middle Eastern investors, but just a few months later it was revealed that the team was in administration.

A crowdfunding initiative saw the team complete the season, and while the team featured on the 2015 entry list and was given dispensation to use its 2014 cars in a bid to help attract a new buyer, in March 2015 the team's assets were sold at auction.

The Daily Express now reveals that the administrators for the team, Smith & Williamson, have admitted that: "Unsecured creditors have not been paid and dividend prospects for unsecured creditors are also unlikely."

One of the biggest losers is engine supplier Renault which is owed 6.2m, while fuel supplier Total is owed 784,090, computer manufacturer Dell 711,134 and McLaren 91,281.

In total over 300 creditors, including former employees, who are owed a total of 23m are unlikely to see any money admits Smith & Williamson.

One of the few successful creditors is Malaysia's EXIM bank which got back its 5.5m loan to the team which was secured on the team's assets and repaid with the proceeds of the sale of its factory.

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1. Posted by Insane Reindeer, 22/05/2018 6:01

"For those of you wondering, Smith and Williamson would of been paid first. I can't remember if we are allowed to post links to outside sites on here on not so if this comment is edited/deleted I completely understand!

"Who gets paid first when a company goes into liquidation?" https://www.begbies-traynorgroup.com/articles/insolvency/who-gets-paid-first-when-a-company-goes-into-liquidation

If you live in the UK and you care about things like this then maybe you could bring it up with your MP. "

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2. Posted by ClarkwasGod, 21/05/2018 13:27

"It's taken 3 years for the auditors to come to this conclusion? I'm assuming they're picking up a nice annual fee in the meantime.......maybe they should waive part of this to give the ex-employees at least something. Why do I think that will never happen."

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3. Posted by Simon in Adelaide, 21/05/2018 10:15

"Along with EXIM there was also Smith and Williamson, I wonder what their fees were?"

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