Arrows Seek Legal Protection

The Arrows team, which is in danger of being wound up for debts owed to former driver Heinz-Harald Frentzen, sought legal protection on Wednesday while it finalised a cash rescue deal.

Lawyers for Arrows Grand Prix International told London's High Court the company had applied for administration.

Arrows had been in court to face winding-up requests brought against them by creditors including Frentzen, who is reported to be seeking around $115,000.

Today's hearing was adjourned following the news of the application and the two matters are to be heard at the same time on December at a court in Birmingham.

"This request (for administration) was designed to protect the team while it finishes the deal," a legal source told Reuters.

Arrows said on Tuesday that German-based investors had agreed to inject cash into the ailing team, which missed five Grands Prix last season as a result of their financial struggles.

The legal sources said it could take several weeks to appoint an administrator and if the company is taken over by the German investors, which could happen in the next few days, the request for administration will be redundant.

The Oxfordshire-based team have until Friday to submit their application to the International Automobile Federation (FIA) to take part in next year's world championship.