Aussiecollector
05-07-2002, 06:02 AM
Hot of the wire this morning,
Formula One racing team Arrows are doomed short of a miracle and look set to miss Sunday's British Grand Prix, the company's lawyers told the High Court here today. The gloomy statement came after British team Arrows were refused permission by Mr Justice Lightman to enter into commercial deals to raise money for new engines so they could take part at Silverstone on Sunday.
The judge said Arrows Grand Prix International Ltd (AGPI) wanted to enter into agreements with drinks firm Red Bull North America involving selling the racing team's Concorde Agreement. Under the terms of the agreement Formula One Administration gives it payments as a competitor. If the deal could not be made, Arrows entitlement to participate in the Championship and consequent payments would terminate immediately.
"AGPI is and has long been insolvent and will be unable to participate in the Silverstone Grand Prix due to take place on Sunday if its supplier of new engines, Cosworth, insists on payment up front of 3.2 million pounds (4.7million dollars) as the purchase price for new engines for its cars, unless AGPI can raise the sum elsewhere," Mr Justice Lightman said, adding that Arrows attempts to restructure the team were "underhand and improper, indeed downright dishonest.�
Arrows chiefs were reported to be trying to arrange a last minute- deal to save the company after Morgan Grenfell, the bankers which have invested millions of pounds in the team, stopped the team selling their major asset - its entitlement to payments from World Championship races.
"We do not have our cars at Silverstone,� an Arrows spokesman told the Press Association. "They won't be here until the outstanding issues with Morgan Grenfell have been sorted out. There are discussions going on at the moment and there will be a statement later on today."
"I have known Tom a long time and he is a fighter,� said Eddie Jordan of the situation. “He is a miracle worker and he will be here tomorrow (Friday)."
Arrows based at Leafield, Oxfordshire, southern England, were founded in 1977 as a splinter grooup from the now defunct Shadow's team. They have competed in 363 races but have yet to record their first win. The closest they came was in Hungary in 1997 when then world champion Damon Hill led for much of the race before technical problems struck shortly before the finish.
They have two points this season, placing them equal eighth in the constructors' championship. If they do fold they will be the second Formula One team to go out of business in seven months after the collapse of Prost which was wound up in January due to debts of approximately 20 million pounds (29.4m dollars).
This both good news and bad news
Good News - Webber will be 2 places further up the grid
Bad News - I hope HRT are not drawing to much $ from TWR.
Cheers Glenn
Formula One racing team Arrows are doomed short of a miracle and look set to miss Sunday's British Grand Prix, the company's lawyers told the High Court here today. The gloomy statement came after British team Arrows were refused permission by Mr Justice Lightman to enter into commercial deals to raise money for new engines so they could take part at Silverstone on Sunday.
The judge said Arrows Grand Prix International Ltd (AGPI) wanted to enter into agreements with drinks firm Red Bull North America involving selling the racing team's Concorde Agreement. Under the terms of the agreement Formula One Administration gives it payments as a competitor. If the deal could not be made, Arrows entitlement to participate in the Championship and consequent payments would terminate immediately.
"AGPI is and has long been insolvent and will be unable to participate in the Silverstone Grand Prix due to take place on Sunday if its supplier of new engines, Cosworth, insists on payment up front of 3.2 million pounds (4.7million dollars) as the purchase price for new engines for its cars, unless AGPI can raise the sum elsewhere," Mr Justice Lightman said, adding that Arrows attempts to restructure the team were "underhand and improper, indeed downright dishonest.�
Arrows chiefs were reported to be trying to arrange a last minute- deal to save the company after Morgan Grenfell, the bankers which have invested millions of pounds in the team, stopped the team selling their major asset - its entitlement to payments from World Championship races.
"We do not have our cars at Silverstone,� an Arrows spokesman told the Press Association. "They won't be here until the outstanding issues with Morgan Grenfell have been sorted out. There are discussions going on at the moment and there will be a statement later on today."
"I have known Tom a long time and he is a fighter,� said Eddie Jordan of the situation. “He is a miracle worker and he will be here tomorrow (Friday)."
Arrows based at Leafield, Oxfordshire, southern England, were founded in 1977 as a splinter grooup from the now defunct Shadow's team. They have competed in 363 races but have yet to record their first win. The closest they came was in Hungary in 1997 when then world champion Damon Hill led for much of the race before technical problems struck shortly before the finish.
They have two points this season, placing them equal eighth in the constructors' championship. If they do fold they will be the second Formula One team to go out of business in seven months after the collapse of Prost which was wound up in January due to debts of approximately 20 million pounds (29.4m dollars).
This both good news and bad news
Good News - Webber will be 2 places further up the grid
Bad News - I hope HRT are not drawing to much $ from TWR.
Cheers Glenn