Formula 1
Formula 1
R
Australian GP
12 Mar
-
15 Mar
Next event in
43 days
19 Mar
-
22 Mar
Next event in
50 days
02 Apr
-
05 Apr
Next event in
64 days
16 Apr
-
19 Apr
Next event in
78 days
30 Apr
-
03 May
Next event in
92 days
07 May
-
10 May
Next event in
99 days
21 May
-
24 May
Next event in
113 days
R
Azerbaijan GP
04 Jun
-
07 Jun
Next event in
127 days
11 Jun
-
14 Jun
Next event in
134 days
25 Jun
-
28 Jun
Next event in
148 days
02 Jul
-
05 Jul
Next event in
155 days
16 Jul
-
19 Jul
Next event in
169 days
R
Hungarian GP
30 Jul
-
02 Aug
Next event in
183 days
27 Aug
-
30 Aug
Next event in
211 days
03 Sep
-
06 Sep
Next event in
218 days
R
Singapore GP
17 Sep
-
20 Sep
Next event in
232 days
24 Sep
-
27 Sep
Next event in
239 days
08 Oct
-
11 Oct
Next event in
253 days
R
United States GP
22 Oct
-
25 Oct
Next event in
267 days
29 Oct
-
01 Nov
Next event in
274 days
R
Brazilian GP
12 Nov
-
15 Nov
Next event in
288 days
R
Abu Dhabi GP
26 Nov
-
29 Nov
Next event in
302 days

Force India creditors already paid by Stroll

shares
comments
Force India creditors already paid by Stroll
By:
Oct 16, 2018, 2:04 PM

Force India has nearly completed the task of paying off the creditors of the original team after a highly unusual move by new owner Lawrence Stroll.

Stroll and his associates paid £90m for the assets of the old team before creating a new company and lodging a new entry with the FIA, under the Racing Point name.

As the original company is under administration, usually that £90m would be locked into a legal process that could take months or even years before the funds are divided up and used to pay the creditors, led by Mercedes and Sergio Perez.

As that figure is more than enough to pay the creditors, all are guaranteed to receive the full amount owed.

Read Also:

However, Stroll took the unusual step of taking over those debts himself and ensuring that the creditors were paid immediately, rather than having to wait for the legal process to unfold. When that process is finally completed, Stroll will get his money back.

"It's important to note that the current shareholders have taken all the risk for the creditors," team principal Otmar Szafnauer told Motorsport.com. "And have put it in extra money such that the creditors can be paid off immediately, and not at some future date, post-administration. That can take one or two years sometimes.

"Lawrence wanted to do what's right by the suppliers that have supported us, and a lot of them are industry suppliers who don't just supply us, but other teams in the paddock.

"And he thought it was right to take care of those people, by guaranteeing that they get 100% of their debt, and in a timely fashion."

Szafnauer suggested that the process of paying the creditors could be completed this week, just two months after the sale to Stroll.

"We're going through all of them, just as they come up, so probably 100% or if not 95% of them will be paid by the middle of October.

"That's not usually what happens in administration, and it's something that we should take note of, and also thank the new shareholders for – not me thanking them, but all the creditors getting paid off early. It takes that worry completely away.

"He'll get it back when the creditors are paid by the administrator, whenever that is."

Szafnauer has been impressed by Stroll's straightforward approach to business.

"He's definitely a motivator and he's a clear and direct talker, so you get good direction. He's got high expectations, which is fine by me. I grew up in a society in the States where people had expectations when they're laying out a bunch of cash.

"I'm happy the expectations are there. We worked hard to make sure we deliver upon those expectations. The nice thing about Lawrence is he tells you exactly what he's thinking, and he's straightforward about it.

"The nice thing is that you can have a debate with him, and he'll listen, and you'll come to a conclusion. But once a decision's made, then you've got to get on with it."

Next article
Correction: Guy Edwards

Previous article

Correction: Guy Edwards

Next article

Albon emerges as favourite for Hartley's Toro Rosso seat

Albon emerges as favourite for Hartley's Toro Rosso seat
Load comments

About this article

Series Formula 1
Teams Force India
Author Adam Cooper