Team's absence from Austin event is confirmed; Just nine teams to run in U.S. GP as Marussia follow Caterham in going into administration
Monday 27 October 2014 13:26, UK
Marussia have entered administration and will miss this weekend's United States Grand Prix, it was confirmed on Monday.
A statement released by the administrators, FRP Advisory LLP, said that with current owner Andrey Cheglakov no longer able to provide investment, the team had tried unsuccessfully to find backing elsewhere.
The administrators have refused to rule out a return at either the Brazilian or Abu Dhabi GPs but added that Marussia's re-appearance - not to mention the futures of nearly 200 employees - depends on whether a buyer can be found.
The statement, made by joint administrator Geoff Rowley, added that only a "very limited window of opportunity" exists for talks.
"Whilst the team has made significant progress during its relatively short period of operation, the highlight of which included securing two constructors championship points in the current F1 season, the position remains that operating a F1 team requires significant ongoing investment," said Rowley.
"With the existing shareholder unable to provide the required level of funding, the senior management team has worked tirelessly to bring new investment to the team to secure its long term future, but regrettably has been unable to do so within the time available. Therefore, they have been left with no alternative but to place the Company into administration.
"With the Marussia F1 Team now in administration, the joint administrators have assessed that, given the current financial circumstances of the Group, it is not viable for the Marussia F1 Team to participate in the next race, the 2014 Formula 1 United States Grand Prix, due to take place this weekend in Austin, Texas.
"The Company will continue to operate while the joint administrators assess the longer term viability of the Company in its present form.
"Following Austin, there are two further rounds of the 2014 championship remaining, in Sao Paulo and Abu Dhabi, and the team’s participation in those races will depend on the outcome of the administration process and any related negotiations with interested parties in what is a very limited window of opportunity.
"No redundancies have been made following the Company's entering into administration and all staff have been paid in full to the end of October. The ongoing staff position will however be dependent on whether the Company can secure new investment in the limited time available.
"We remain highly focused on engaging with interested parties."
One such is understood to be British-Indian brothers Baljinder Sohi and Sonny Kaushal. A report in Monday's Daily Telegraph said that the pair, who have amassed a fortune in the steel industry, have made a £55m offer for the team.
“We are very close to a deal,” Sohi was quoted as saying. “But it has to be the right price. We have put in a serious offer and we will see what happens.”
Marussia were originally known as Virgin Racing but were subsequently taken over in order to promote the Marussia sportscar company owned by Cheglakov.
However, their plans to manufacture supercars never came to fruition and the company was wound up earlier this year.
Although any buyer would have to take on debts estimated at £30m, Marussia are set for a cash windfall at least equivalent to that amount next season, provided they can finish in the Constructors’ Championship top ten.
They are currently ninth after Jules Bianchi finished ninth in May’s Monaco GP and with rivals Caterham now also in administration and set to miss the next two races, it seems more than likely they'll manage it.
Marussia are still coming to terms with Bianchi’s horrific accident in the Japanese GP earlier this month. The Frenchman remains in a critical condition in hospital.
