Michael de Picciotto joins a consortium of investors to rescue Force India from administration

7 Aug 2018

 

Silverstone-based Formula 1 team Force India is to be rescued from administration and returned to solvency following a deal agreed between the joint administrators, a consortium of investors led by Lawrence Stroll, and the team’s senior management.

  • Force India management backed by a consortium of investors agree a deal with the joint administrators to secure the future of Force India.
  • All 405 jobs saved at the Silverstone-based team.
  • “Bright future ahead” for Force India which came fourth in last year’s Constructors’ table.

The investors are 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, businessman Lawrence Stroll and his business partner Silas Chou.

Under the terms of an exclusivity agreement signed today, the company will be able to exit from administration, the creditors will be paid in full, all jobs will be secured, and ongoing funding guaranteed.

Force India Chief Operations Officer Otmar Szafnauer, along with his senior management team, worked with the administrator to find investors able to secure the long-term future of the business.

All 405 jobs will be saved by the transaction, which has been agreed less than two weeks after the company was placed into administration by the High Court in London.
The swift turnaround of fortunes for the F1 team underlines the strength and depth of the company which finished fourth in last year’s Constructors’ table. Force India’s highly-skilled workforce, responsible for its consistent level of performance in recent years, is a key reason why the consortium saw this deal as a great opportunity.

Commenting on the deal, Mr Szafnauer, said:

“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. 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.”

Joint administrator Geoff Rowley said today:

“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. All creditors will be paid in full, all jobs will be preserved, and the team will have significant funding to invest in its future.

“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 consortium of investors are 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, businessman Lawrence Stroll, and his business partner Silas Chou

As a result of today’s deal Force India fans can be assured the team will be competing for points at the Belgium Grand Prix which takes place on 26th August.

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