FIA Waiting for Explanation from Arrows

The Formula One governing body, the FIA, revealed they have yet to receive a letter of explanation from the Arrows team over their decision to miss this weekend's Hungarian Grand Prix.

A source close to the FIA admitted the situation "is not looking good" for Arrows after they decided to turn their trucks around and cancel plans to enter the next round of the World Championship.

And after leaving the FIA "not best pleased" with their performance at last month's French Grand Prix, where they failed to qualify after making a feeble attempt to participate, Arrows are in hot water again.

"I think it is reasonable to expect a written explanation of force majeur, but that is yet to arrive," said the source, who admitted there could be serious repercussions over the team's failure to race.

Team boss Tom Walkinshaw is still in negotiations with shareholders Morgan Grenfell over a rescue bid but it is understood that the finance house are refusing the budge and still retain an injunction against the team bringing in new investors.

The outfit's cars returned to the track for the last race in Germany, but by skipping Hungary they risk losing all rights to compete in Formula One if they are deemed to have missed it whilst insolvent.

The source added: "If the organiser of the event wants to make a formal appeal against what Arrows are doing, that is something that they could do if they wanted.

"But more fundamental is whether they are financially insolvent, because they would lose their rights and that is a serious question to be addressed. Even if someone steps in at this late stage, if another team goes to arbitration over Arrows' possible insolvency the potential future value of the team is severely affected."

Any loss of rights, which are determined by the complicated Concorde Agreement, would almost certainly lose the team millions of dollars in television money which they may win this year.