About 50 investors were interested in saving the Manor, but neither one of them deal was made was not, according to AUTOSPORT.
In early January in the company of Just Racing Services Ltd, to carry out operational activities of the team, external management was entered, and after a few weeks was informed about its closure.
As said the owner, Stephen Fitzpatrick, the cause of the financial collapse of the Manor was the loss of tenth place in the constructors ‘ championship after the Grand Prix of Brazil when Sauber stepped forward. But in documents from FRP Advisory says that the interest to purchase the team was still high.
“For the season-2017 the team had a budget of $ 43 million pounds sterling (not including income from racers and sponsors), said in a statement administrators. – Stakeholders were informed about this requirement. We held discussions with around 50 interested parties, but none of them failed to provide enough evidence of funds that would allow the team to regain solvency.
Request to the stakeholders was to demonstrate the immediate availability of 5 million pounds, coupled with the availability of a business plan on how you will be funding in 2017.
Work with the stakeholders took a lot of time due to the nature of this sport and people who participate in it.
Some parties have taken significant time from administrators, but are unable to demonstrate that they have access to cash resources to advance the team forward.
Despite all of the opportunities provided interested parties, none of them were able to provide reliable solution to the problem of the insolvency of the company.”
In January of FRP made full payment of staff salaries trying for this month to keep the staff and to the maximum extend work on a new machine. At the same time there was developed a plan of action in case of use of upgraded of last year’s car.
But in the absence of the investor and budget January 31, was fired 150 employees, and the remainder of the staff continued to assist the administrators and the maintenance of fragile possibilities still to find new owners.
Manor Grand Prix Racing Ltd, under a license which the team competed in Formula 1, is not formally under administrative control, but at the end of February, she officially withdrew the application for participation in the championship of 2017.
Just Racing Services Ltd Manor Grand Prix Racing Ltd are part of the third holding company Just Racing Ltd – three companies 100% owned by Fitzpatrick.
“In the present study the question of whether the chassis of racing cars MGPR or company, and whether to use the internal compensation between the MGPR and JRS, said further part of the FRP application. This can lead to an increase in accounts payable of 34 million pounds.”
Currently, the size of accounts payable is around 10 million pounds, of which 7 million have at Just Racing Ltd. The other 3 million have on third-party creditors.
As the secured creditor named Mercedes-Benz Grand Prix Ltd, which is owed £ 238000. Among the other large sums, it is worth noting the debt owed to the British tax authority (HMRC) – 340177 pounds.
The statement of the FRP in the Bank remains in the amount of 1.62 million pounds, and the physical assets in the amount of 2.47 million pounds will be auctioned.
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