Caterham Sports Limited, the company that manufactures the cars for the Caterham Formula One team, has been put into administration.
However, Reuters reports that sources close to the team say the legal action is not expected to impact its racing activities. The rights to the F1 program are held by 1Malaysia Racing Team, an entity separate to CSL.
A senior source told Reuters’ Alan Baldwin: “There should not be a threat. This should not affect the F1 operation because it is a completely separate company.”
The London-based administrators for the CSL matter, Smith & Williamson LLP, have said that discussions have taken place with team principal Manfredi Ravetto and the team’s backers in hopes that “a financially acceptable arrangement for the continuation of the relationship between the Company and the F1 Team” can be reached.
Earlier this month, bailiffs seized a variety of items from the team’s headquarters in Leafield, England. Ravetto promptly played down the event a few days later and insisted that the team had no concerns about payment to its staff or finishing out the remainder of the 2014 World Championship.
Nonetheless, it’s been a rough few months for Caterham after it was sold by former owner Tony Fernandes in July.
Additionally, at the most recent Grand Prix in Russia, Kamui Kobayashi told NBCSN’s Will Buxton that he was told to park his Caterham car early in the race by team management in order to save mileage.
The team is currently last in the Constructor’s Championship and has not yet scored a single World Championship point since its debut in 2010. Rookie Marcus Ericsson currently has the team’s best finish of 2014, an 11th place showing in Monaco.