The calamitous USF1 effort has finally admitted defeat with regard to resuscitating its bid to join the grand prix grid in F1 2011 - as engine-supplier Cosworth confirmed that it has 'terminated its agreement' with the North Carolina operation and is now 'seeking settlement of outstanding debts'.

The trials and tribulations of the Charlotte-based concern's ultimately shambolic attempt to become the first American team in the top flight in more than two decades were well-documented, and largely engendered by a chronic underestimation of the costs involved.

No car was ever fully built, and after desperate pleas to the FIA to be allowed to skip the first four grands prix of the campaign and subsequently to be allowed to defer its entry until 2011 altogether fell on deaf ears at the governing body - and vague if scarcely credible pronouncements from co-founder and team principal Ken Anderson that an application may yet be re-submitted for 2011 - the end of the road has now finally been reached in the whole sorry saga.

The factory has been shut down, the workforce has been released and Cosworth has now officially severed its ties with USF1, ending the three-year contract it had with the team.

'Cosworth has today terminated its Formula 1 Engine Supply Agreement with USF1 following the team's decision to liquidate its assets as notified by its announcement to creditors dated 19 May 2010,' read an official statement from the famous British engineering firm.

'Cosworth has taken this step with great regret as it had been supporting USF1 over the last few months with regards to a proposed entry for the 2011 season, but USF1's decision has meant that Cosworth has no choice but to terminate.

'Cosworth is a significant creditor of USF1, and will therefore join the other creditors of the team in seeking settlement of outstanding debts from the managed disposal of the remaining assets of the team.'

In the wake of USF1's collapse, it is understood that a number of the team's staff have now switched their allegiance to the new Cypher Group, which has tentatively tabled its own bid for 2011.