Judge Attacks Walkinshaw's Running of Arrows

A High Court judge, clearing the way for a multi-million pound claim against beleaguered Arrows boss Tom Walkinshaw by his former team backers, said on Friday that he had been "in over his head" running a Formula One team.

Two Morgan Grenfell and two Deutsche Bank companies are suing Walkinshaw and the Arrows racing companies which he founded for recompense after they went into liquidation last month.

The judge, Mr Justice Pumfrey, rejected today a move by Walkinshaw and the companies to dilute the action against them by claiming agreement had been reached to reduce their liability.

Mr Justice Pumfrey ruled that no such agreement had been reached and as a result the action - which includes a claim of up to 10 million pounds ($15.79 million) when interest is taken into account against Walkinshaw personally - will go on later this year.

At the same time the judge called Walkinshaw's business acumen seriously into question.

"Mr Walkinshaw left me with the clear impression of a man who was in over his head. He appeared to lack the clarity of thought necessary to follow a clear policy," the judge said.

"He obviously had a high opinion of his own business abilities, but my impression was different."

The judge said that the claimants argued that they were secured creditors of Arrows Autosport Ltd and Arrows Grand Prix International Ltd and had the benefit of an indemnity from Walkinshaw.

'Wholesale Disregard'

Arrows and Walkinshaw argued that agreements leading to those claims ended on July 11th 2001 but the judge ruled against them on Friday.

The judge said Walkinshaw's behaviour had in certain respects fallen well below the standards to be expected from the managing director of a large company.

He said the team chief had shown "wholesale disregard for the interests of Arrows Grand Prix's creditors" though he did not consider he had been dishonest.

Arrows went into liquidation last month after a winding-up petition was granted against them on behalf of their former driver Heinz-Harald Frentzen.

The team was excluded from the 2003 championship after missing five of the last six races last season. They laid off their staff in December.

Arrows had been in Formula One for 25 years and held the sport's record of 382 starts without winning a race. Their departure, hot on the heels of failed rivals Prost, left the championship with just 10 teams.