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Michael Murphy
October 28th, 2014, 12:21 PM
So the news that Caterham F1 is in administration is not much of a surprise, but I thought (without bothering to research) that the F1 shenanigans were in a separate corporate structure if not outright different ownership to the dinky little car company that makes the stuff we buy. This video shows Graham Macdonald standing in front of a production line of said dinky little cars with the headline "things look bleak for caterham". Should we be worried?

http://www1.skysports.com/watch/video/sports/f1/teams/caterham/9530942/things-look-bleak-for-caterham

Sean
October 28th, 2014, 01:52 PM
The co-branding would make it seem so, especially with that interview, but I don't believe that is the case. Some discussion from "the other side" here:
PH article: Is Graham McDonald really this stupid! (http://www.pistonheads.com/gassing/topic.asp?h=0&f=101&t=1455348&mid=174634&nmt=Is+graham+McDonald+really+this+stupid!%3F)


edit -- An attempt at clarification, though even attempting that is like trying to understand the female logic process in humans... :icon_smile:
RE article: How Caterham F1 Collapsed (http://www.racecar-engineering.com/articles/how-caterham-f1-collapsed)

Michael Murphy
October 28th, 2014, 02:22 PM
Thanks Sean actually it seems pretty clear - from the second article:

The situation saw the Caterham Group (which produces the popular road cars) and still owned by Tony Fernandes distance itself from the Formula 1 team stating –
“Caterham Group wishes to clarify that, following the sale of the F1 business in July, it has no affiliation with Caterham F1 Team. The Caterham brand name is in Formula One as a result of the Group’s former ownership of the F1 team and is being used under licence. The Caterham Group is concerned about the negativity that these circumstances, which are outside of its control, have on its brand and will continue to monitor the situation.
Caterham Group now consists of Caterham Cars, Caterham Technology & Innovation and Caterham Composites; the F1 team is now run by an unconnected consortium of Middle Eastern and Swiss investors, following its sale earlier this year.”

Sean
October 28th, 2014, 02:28 PM
Well, it seems clear until you read further that officially, Tony F. still owns the team. Maybe...

CASwede
October 28th, 2014, 07:17 PM
What will remain unclear for some time will be the status of cross corporate debt guarantees, which are at the heart of Mr. Fernandes' airline problems in Malaysia. Hopefully CG are not tied to debt that they believed had been jettisoned in a sale that may or may not have occured. I know I wouldn't lend to an F1 team without backing that extended far beyond the corporate structure of a racing venture.

Edit: I confused Fernandes' cross guarantee problems with Mallya, the other asian airline F1 owner. But the financial obligations will likely extend beyond the corporate F1 team. Good news for attorneys and accountants.