RACING NEWS

Marussia F1 team succumbs to bankruptcy

Marussia F1 team succumbs to bankruptcy image

Text: Eric Tipan / Photos: Marussia F1 Facebook fanpage | posted October 29, 2014 06:11

Bows out of the US Grand Prix

Marussia F1 team will not see action at the upcoming United States Grand Prix after it declared bankruptcy and has been handed to administrators, FRP Advisory LLP.

This unfortunate turn of events for Marussia follows the horrific accident to their driver Jules Bianchi, who continues to be in critical but stable condition.

Some 200 jobs in the team are now at risk and staff positions will now be contingent to new investment that can be secured in the limited amount of time the season presents.

"With the existing shareholder unable to provide the required level of funding, the senior management team has worked tirelessly to bring new investment to the team to secure its long term future.  But regrettably has been unable to do so within the time available. Therefore, they have been left with no alternative but to place the company into administration," said Geoff Rowley, joint administrator to Marussia.

"Following Austin, there are two further rounds of the 2014 championship remaining, in Sao Paulo and Abu Dhabi, and the team's participation in those races will depend on the outcome of the administration process and any related negotiations with interested parties in what is a very limited window of opportunity.

"No redundancies have been made following the company's entering into administration and all staff have been paid in full to the end of October. The ongoing staff position will however be dependent on whether the company can secure new investment in the limited time available.

"We remain highly focused on engaging with interested parties," said FRP Advisory LLP in a statement.

Marussia becomes the second F1 team to declare bankruptcy after Caterham was formally handed over to administrators last week.

The race in Austin, USA will go on without Marussia and Caterham and will be composed of only 18 cars on the grid.