The current owners of Caterham "have been unable to fund" a company associated with the F1 team, according to administrators.

It emerged that Caterham Sports Limited (CSL) had been placed in to administration on Monday, with the company building cars for the F1 team which is operated by 1 Malaysia Racing Team (1MRT). Finbarr O'Connell, restructuring and recovery partner at administrator Smith & Williamson, said uncertainty over who actually owns the team was clouding matters.

"Clearly, the parties who bought the business from Tony Fernandes have been unable to fund this company," O'Connell told the Financial Times. "When it comes to F1 teams, you are normally dealing with one figurehead who is very much in the public eye. [However], the current owners of the Caterham Formula One team are not completely clear to me as yet."

Related Articles

Employees of CSL have been transferred over to 1MRT, and O'Connell said he was looking to ensure they could continue working from the team's current base.

"I'm trying to enter into an arrangement with 1MRT whereby they (employees) can stay here at the Leafield site," he told the BBC. "If I can reach an agreement with them then hopefully jobs are not at risk. If I can't reach an agreement then all those employees, 1MRT will have to decide what to do with them, but they won't be at the Leafield site."

It is understood that the developments do not impact on Caterham's plans to take part in the final three races of the season, with a team spokesperson telling "CSL going into administration does not affect the F1 Team".

Smith & Williamson also said it is hopeful that CSL can continue as a supplier to the F1 team, though an agreement needs to be reached soon.

"Positive discussions were held between the administrators and the team manager, Manfredi Ravetto, and also with the financial backers of the team on Friday 17 October," a spokesperson for the administrators said.

"It is hoped these will lead to a financially acceptable arrangement for the continuation of the relationship between the company (CSL) and the F1 team. If a financially acceptable arrangement cannot be agreed between the administrators and the Caterham F1 Team, the administrators will then enter into dialogue with other interested parties with regard to a sale of the business and assets of the company."