Creditors set to lose £23m as Caterham hits the pits
CREDITORS of the collapsed Formula One team Caterham are on track to lose £23 million, after administrators said there are insufficient funds to pay them, writes Christian Sylt. Oxfordshire-based Caterham Sports has been in administration since 2014, but documents filed last week show that the process of closing the company is nearing its final lap.
Oxfordshire-based Caterham Sports has been in administration since 2014
Its creditors range from former employees to Renault, which is owed £6.2 million for supplying V6 engines to the team.
However, in the documents, administrators Smith & Williamson stated: “Unsecured creditors have not been paid and dividend prospects for unsecured creditors are also unlikely.”
Caterham failed to score a single point over the four years that it raced in F1 and its lack of success was the catalyst for its collapse.
It drove up debts with 336 firms and according to the documents, only Malaysia’s EXIM bank has got its money back.
Caterham failed to score a single point over the four years that it raced in F1
Unsecured creditors have not been paid and dividend prospects for unsecured creditors are also unlikely
Its £5.5 million loan was secured on the team’s assets and was repaid with the proceeds of the sale of its factory.
Oil giant Total is owed £784,090, while £711,134 is due to computer manufacturer Dell and £91,281 to British engineering firm McLaren.
Caterham’s poor results on the track drove Malaysian entrepreneur Tony Fernandes to sell up to a Swiss consortium in June 2014.