The Force India Formula 1 team has been saved from administration by a consortium of investors led by Lawrence Stroll. 

Force India entered administration on the eve of the Hungarian Grand Prix weekend after driver Sergio Perez started legal action against the team in the hope of warding off a winding up petition, but a bid from Stroll, the father of Williams driver Lance Stroll, has been accepted by administrators. 

The news emerged on Tuesday evening and means all creditors will be paid in full, while all 405 jobs at the team have been secured as a result. Force India chief operations officer Otmar Szafnauer worked with the administrator to find investors in order to safeguard the future of the team. 

5774263478001

CrashTV: 

"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," Szafnauer said. 

"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.”

Several parties had expressed an interest, but the consortium led by Stroll and including Canadian entrepreneur Andre Desmarais, Jonathan Dudman of Monaco Sports and Management, fashion business leader John Idol, telecommunications investor John McCaw Jr, financial expert Michael de Picciotto, and Stroll's business partner Silas Chou, secured the all-important deal.

Joint administrator Geoff Rowley added: "It is rare that a company can be rescued and returned to a position of solvency. 

"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, and significantly more will be available once the company emerges from administration which we expect within the next two to three weeks."

The agreement ends months of speculation surrounding the Silverstone-based squad's future, with former team director Vijay Mallya currently fighting extradition from the UK to India.

It does, however, raise further questions over the driver market situation for 2019 and the future of Esteban Ocon, with Lance Stroll having been linked with a move to Force India in recent weeks. 

Comments

Loading Comments...