Official: Arrows to Miss Hungarian Grand Prix

The debt-riddled Arrows Formula One team will not take part at this weekend's Hungarian Grand Prix, it was announced on Tuesday.

The Leafield-based squad confirmed that they are still in talks with potential investors that could secure their future and that they have been advised to skip this weekend's race at the risk of facing sanctions from Formula One's governing body, the Federation Internationale de l'Automobile (FIA).

"Arrows Grand Prix International today confirms that it remains in detailed discussions with potential investors," said the team in a statement. "In the light of this, Arrows has been advised to do nothing that could interfere with these discussions and that the OrangeArrows team should not compete in the Hungarian Grand Prix this weekend.

"Arrows hopes to be in a position to make a further statement within the near future."

Some reports have claimed that the transporters travelling to Hungary were ordered to turn around and head back to Leafield after reaching Germany.

Mandatory scrutineering for the race is on Thursday at the Hungaroring and the 13th round of the season will now have a maximum of 20 cars, providing that Britain's Anthony Davidson can qualify on his debut for Minardi.

Arrows currently have only one named driver - Brazilian Enrique Bernoldi - after Germany's Heinz-Harald Frentzen was released from his contract last week due to the team's financial uncertainties.

Stiff Penalties

The team, who have scored two points so far this year and are currently 11th and last in the standings, could face heavy penalties for missing the race under the sport's secretive Concorde Agreement.

Teams that fail to compete due to insolvency lose their rights to enter the Championship but Arrows, despite major financial difficulties this season, have insisted that they remain solvent. Sources close to the International Automobile Federation (FIA) expected the team to argue that their no-show in Hungary was due to force majeure.

Arrows competed in the last German Grand Prix after a veiled warning from the FIA that they could be kicked out of the Championship if they failed to make a serious effort to participate. The team had made only a token attempt to qualify for the previous French Grand Prix and did not take part in Friday's free practice in Britain or France.

Their involvement in the British Grand Prix in July was in doubt until the Friday evening after engine supplier Cosworth demanded payment before releasing the equipment. Since then, former British American Racing (BAR) team principal Craig Pollock has emerged as the main potential purchaser with U.S. backing.

Pollock told the Swiss newspaper Le Matin last week that he had made a second proposal to Arrows principal Tom Walkinshaw after withdrawing an earlier offer. Austrian businessman Dieter Mateschitz, whose Red Bull sports drink company is a team sponsor, has also been highlighted as an interested party.

Walkinshaw has been prevented from bringing new investors into the cash-starved team by an injunction on behalf of major shareholders Morgan Grenfell Private Equity.