Manor F1 team had approximately 50 parties interested in revival

Approximately 50 parties expressed an interest in reviving the Manor Formula 1 team, the company handling its administration claims

Manor F1 team had approximately 50 parties interested in revival

The F1 team - run by Just Racing Services Ltd - entered administration in early January, with doors closed at the end of the month after a deal to sell the team could not be reached.

Owner Stephen Fitzpatrick cited Manor losing 10th place in the 2016 constructors' championship due to Sauber's Brazilian Grand Prix points as having sealed the outfit's fate.

Even with that loss of prize money, administrator FRP Advisory said "discussions with an investor continued daily", and that interest from approximately 50 parties encouraged the payment of £600,000 on January wages in attempt to buy time to find a solution.

However, it says in official papers that level of interest also proved a hindrance.

"The net funding requirement for the team for the 2017 season was £43m (which excludes any income which could be achieved from driver income and sponsorship)," it said.

"Interested parties were advised of this requirement. [We] have had discussions with approximately 50 interested parties but none were able to provide sufficient comfort that they had the cash resources to enable the company to return to solvency.

"The request to interested parties was to demonstrate the immediate availability of £5m with a supporting business plan to show how the 2017 year would be funded.

"Dealing with interested parties has been time consuming due to the nature of the sport and those people involved in it.

"A number of parties occupied significant administrator time but were unable to demonstrate that they have access to the cash resources to take the team forward.

"Despite every opportunity afforded to interested parties, none could provide a credible solution to the insolvency of the company."

FRP's payment of January wages was done to maintain the possibility of saving the team and developing its 2017 car as much as possible, while a contingency plan "for a compliant modified 2016 car" was also hatched.

With no investor found and no budget for the February wages, 150 employees were made redundant on January 31, with a skeleton staff kept on to help with the administration process and to maintain the "slim possibility" that an investor could still be found.

Manor Grand Prix Racing Ltd, which held the team's F1 entry and contracts with principal suppliers such as Mercedes and Williams, is not in administration, but it has formally withdrawn Manor's 2017 entry.

Just Racing Services Ltd and Manor Grand Prix Racing Ltd are part of a third holding company, Just Racing Ltd, with all three entities 100% owned by Fitzpatrick.

FRP says it is "currently investigating whether the racing car chassis are owned by MGPR or the company" and "whether an intra-company recharge should be applied between MGPR and JRS.

"This could result in an increase in unsecured creditors by £34m."

The amount currently listed as owing to creditors is £10m, of which nearly £7m is owed to Just Racing Ltd

The remaining £3m is due to third party creditors, including many small suppliers who were hit badly by the previous failures of Marussia and Caterham.

Mercedes-Benz Grand Prix Ltd is named as a secured creditor, owed "approximately £238,000", while the UK's HMRC tax authority is owned £340,177 among the other key amounts.

FRP reports there is £1.62m of cash in the bank, with the physical assets - valued at £2.47m - to go to auction.

shares
comments
F1 returning to V10/V12 engines would not be accepted - Jean Todt
Previous article

F1 returning to V10/V12 engines would not be accepted - Jean Todt

Next article

F1 testing: Bottas fastest on Wednesday as Raikkonen crashes

F1 testing: Bottas fastest on Wednesday as Raikkonen crashes
Why Mercedes believes it can make the step F1 needs to fight Red Bull Plus

Why Mercedes believes it can make the step F1 needs to fight Red Bull

The 2022 Formula 1 season was Mercedes' leanest for a decade, achieving just a solitary pole and grand prix win. Yet the team is confident it has got the tools it needs to cast that disappointment aside and return to the front of the field again next year

How BRM's one-off F1 double defied its rollercoaster history Plus

How BRM's one-off F1 double defied its rollercoaster history

It’s 60 years since BRM achieved its goal and Graham Hill led the team to a world title double. But that was just part of the remarkable story of a unique team that at times overstretched its resources and had its fair share of disappointments

Formula 1
Dec 8, 2022
The bold F1 DRS experiment that could end the debate forever Plus

The bold F1 DRS experiment that could end the debate forever

OPINION: The effectiveness of DRS in Formula 1 remains a topic of debate as the winter break gives a chance for reflection on the racing we saw in 2022. For all of its detractors, perhaps an experiment where DRS is cast aside and the impact this has on racing is in order to truly understand its merits in modern F1

Formula 1
Dec 8, 2022
The sliding doors moment that saved Red Bull and Porsche Plus

The sliding doors moment that saved Red Bull and Porsche

OPINION: Everything looked set for Red Bull and Porsche to join forces for the 2026 season, before the marriage between both parties was called off. While at the time it looked like a major coup for Formula 1 in gaining both VW Group powerhouses Audi and Porsche for 2026, Red Bull and Porsche have really been spared a potentially fractious relationship.

Formula 1
Dec 7, 2022
How Tyrrell’s post-Stewart era descended into a fight to survive Plus

How Tyrrell’s post-Stewart era descended into a fight to survive

Glory days for Tyrrell became increasingly infrequent
 after Jackie Stewart’s retirement. But in the latest instalment of his history of the team for Autosport's sister title GP Racing, 
MAURICE HAMILTON recalls how Ken Tyrrell’s plucky and defiantly small team stayed bold enough to innovate – springing a surprise with F1’s first six-wheeled car

Formula 1
Dec 6, 2022
The forgettable final car of a former F1 giant that gave Damon Hill his start Plus

The forgettable final car of a former F1 giant that gave Damon Hill his start

While it launched the F1 career 
of a future world champion, STUART CODLING recalls that the BT60 was also the final nail in the coffin of a once-great marque 30 years ago. Here is its story

Formula 1
Dec 5, 2022
How departing F1 boss Brawn views F1’s new rules - and the future Plus

How departing F1 boss Brawn views F1’s new rules - and the future

Multiple-title-winning designer and team boss Ross Brawn is finally leaving Formula 1 after nearly 50 years in motorsport. But he still has plenty of insights on what’s working and what comes next, as he revealed to Autosport in a far-reaching exclusive interview in Abu Dhabi

Formula 1
Dec 2, 2022
The key F1 management call Ferrari must make to avoid more defeat Plus

The key F1 management call Ferrari must make to avoid more defeat

OPINION: Mattia Binotto’s departure from Ferrari will naturally bring a range of changes across the Formula 1 team. But how the changes shape up and the impact they could have is set to be dictated by a key direction Ferrari’s top dogs will need to pick

Formula 1
Nov 30, 2022