Jaguar Threatened with Legal Action (updated)

With the season under two months away, Jaguar Racing will find out this weekend if they are to be involved in a court battle over an alleged £600,000 (pounds) debt.

Northampton-based company Vodac UK claim they are owed the money through Pi Developments, who run the electronic department of Jaguar Racing, and will fold if payment is not made. Vodac have given Pi until this weekend to resolve the situation.

Steve Taylor, chief executive of Vodac UK, claims the money is owed for his company's services to Jaguar Racing last year, which included the provision of telemetry equipment and steering wheels for the race team.

"We've jumped through hoops for them and if we're going down, we're going down fighting," said Taylor. "We had a 12-month deal and we have written documents instructing us to complete work. They can't suddenly turn around and say they've never heard of us.

"Our respective solicitors are in contact and we have already let them pass an original deadline of January 5 until court action goes ahead. My solicitors are now giving them until the end of this week to pay up."

Taylor, who has already been forced to lay-off eight of his original 15 staff, suggested he was suspicious of the timing of Pi's decision not to pay. He claimed that Pi is his main rival and had previously indicated the funds would be made available.

"All I will say is that it's ironic timing from Pi," added Taylor. "It all seems too well orchestrated. This is normally a crucial part of the year for us, but now we're left in the dark. "We normally negotiate with teams in the middle of the year and when we had meetings we were told not to worry because the funds would be there."

Pi Developments, a Cambridge-based company, were employed by Jaguar Racing's parent company Ford in February 2000. Taylor, who worked for Ford for 14 years before setting up Vodac UK four years ago, now faces bankruptcy.

"We probably won't survive even if we win the legal battle," said Taylor. "The people that are still here have agreed to work for six months for no money and I have never been able to draw a wage. It's extremely off."