MUMBAI: A little under two weeks since Sahara Force India went into administration, a deal to save the Silverstone-based team was announced Tuesday with a consortium led by Lawrence Stroll, father of current Williams F1 driver Lance.
In administration since the Friday of the Hungarian Grand Prix weekend, Stroll has rescued all 405 jobs within the Force India organization and guaranteed its funding for the foreseeable future, Auto Week reports.
The consortium includes the elder Stroll, business partner Silas Chou, Canadian entrepreneur Andre Desmarais, Jonathan Dudman of Monaco Sports and Management, fashion business leader John Idol, telecommunications investor John McCaw Jr. and financial expert Michael de Picciotto.
That group will immediately take ownership of the team from co-owner Vijay Mallya and Orange India Holdings Sarl.
“Once we went into administration, there were a couple that have been there and didn’t come out,” Force India chief operating officer Otmar Szafnauer told Motorsport.com. “So, there is a lot of trepidation amongst all the team members, and a lot of anxiety, because we didn’t know where it was going to go.
“It’s a huge relief to know there’s a future for the team. We’ll be able to continue as a normal Formula 1 team.”
Szafnauer played a key role in helping the administrators find the investors.
“This outcome secures the future of the Force India team in Formula 1 and will allow our team of racers to compete to our full potential,” said Szafnauer. “I am delighted that we have the support of a consortium of investors who believe in us as a team and who see the considerable business potential that Force India has within F1 now and in the future.
“At Force India, our expertise and commitment has meant that we have always punched above our weight, and this new investment ensures that we have a bright future ahead of us. I also would like to thank Vijay, the Sahara Group and the Mol family for all of their support and taking the team as far as their circumstances would allow.”
Mallya, co-owner of the team for the last 11 years, has been its official team principal, with Bob Fernley acting as his deputy. Szafnauer told Motorsport.com he did not know if he and Fernley would retain their positions.
“It’s early days,” he said. “I would hope they would keep the senior management on.
“This just happened, I haven’t sat down with the new owners to say ‘what do you want to do?’.”
Stroll has been helping bankroll Williams for the past two years, as his son Lance made his grand prix debut with the team in 2017.
The younger Stroll is now expected to switch to Force India, which is likely to pursue a name change now it is not under Mallya’s control, for 2019.
Szafnauer said the driver situation was the same as the one facing team personnel.
“In the near future, we’ll have all those conversations,” he said. “But that’s looking forwards, not looking backwards.”
With existing debts, the largest of which Mallya had earlier identified as being owed to the team’s own holding company which he said was owed £159 million compared to the largest (BWT) of the smaller creditors being owed less than £10 million, expected to be paid in full in the coming weeks, the team can now look forward to being able to develop their 2018 car with their fortunes looking considerably brighter than they were just a few days ago.
Geoff Rowley, representing joint administrators FRP Advisory LLP, said that Force India have been incredibly fortunate in their short-lived search for new investment.
“It is rare that a company can be rescued and returned to a position of solvency,” said Rowley. “The quality of the various interested parties has been impressive and required careful consideration as the administration has progressed.
“Having followed a robust process, in the end we were left with a highly-credible offer to save the company and restore solvency. Funding to support the team will be made available from today (Tuesday), and significantly more will be available once the company emerges from administration which we expect within the next two to three weeks.”
Mallya and Sahara had a 42.5% stake each in Force India while Mol Family owned 15%.
India is currently seeking Mallya’s extradition from the UK over unpaid loans linked to his defunct Kingfisher Airlines.
Since their first season in 2008, Force India have gone on to become a strong midfield team, finishing fourth in the past two seasons.
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