Ex-Caterham F1 employees finally get small sum

More than 200 ex-Caterham Formula 1 employees have been paid a small sum as the long-running legal saga following the team's collapse finally nears its end.

Ex-Caterham F1 employees finally get small sum

Caterham went into administration in 2014 amid a dispute between founder Tony Fernandes and a group of investors who had bought the team that summer.

Administrators from Smith & Williamson took control of Caterham later in the year but the team had to miss the US and Brazilian Grands Prix, before a crowdfunding project helped secure its participation in the Abu Dhabi season finale.

Attempts to help it continue in 2015 came to nothing and while several members of staff went on to secure jobs at other F1 teams or elsewhere in motorsport, Caterham's assets were sold at auction before the start of the campaign.

Motorsport.com has learned that earlier this month, Smith & Williamson was able to pay 216 employees that were transferred to their control under TUPE regulations from Caterham.

A statement from the administrators – Finbarr O'Connell, Henry Shinners and Mark Ford – given to Motorsport.com described the recent payment, made on January 15, to those employees as "good news".

"[It] reflects the years of work performed by the administrators in unwinding the complex affairs of the Caterham Formula 1 companies," read the statement.

The administrators said that many of the assets they were responsible for converting had "international aspects and were subject to competing claims that had to be resolved before being realised".

They state that the last assets have been realised and tax affairs completed, meaning sufficient funds were finally available to make the relevant payments.

While the specific amounts are unknown, last year the administrators reported it had received £217,495.06 worth of claims from employees.

They state that "preferential creditors are entitled to receive the equivalent of unpaid wages for the previous four months up to a maximum of £800 total", plus holiday pay of up to six weeks and "some occupational pension payments".

The payments have been made after tax and National Insurance contributions, which have been paid to HM Revenue & Customs.

They represent a "payment in full of preferential claims" and account for the employees' holiday and wage arrears "after deductions paid by the Redundancy Payments Service".

The administrators say the RPS made initial payments to these employees shortly after Caterham went into administration.

Any owed wages over the £800 limit, "pay in lieu of notice" or "redundancy entitlements", are deemed as unsecured claims along with business suppliers.

Unsecured creditors include the companies who have sought outstanding payments from Caterham, which administrators said last October, in their latest progress report, comprised 25 creditors claiming £66.8million.

According to the administrators "there remains a good prospect for a small dividend for unsecured creditors and we anticipate that such payment will be made in the next six months", after which the case will be concluded.

The most recent administrator's progress report stated that the administrators had drawn £713,502 in fees from November 2014 to August 2018.

They anticipated that future costs in respect of outstanding matters would total between £15,000 and £30,000.

Marcus Ericsson, Caterham CT05

Marcus Ericsson, Caterham CT05

Photo by: Sam Bloxham / LAT Images

shares
comments
Renault: Power steering only part kept in all-new 2019 design

Previous article

Renault: Power steering only part kept in all-new 2019 design

Next article

Why the last innovative Lotus was banned

Why the last innovative Lotus was banned
Load comments

About this article

Series Formula 1
Author Scott Mitchell
How long can Verstappen and Hamilton keep it clean? Prime

How long can Verstappen and Hamilton keep it clean?

Lewis Hamilton and Max Verstappen have been evenly matched so far in the 2021 Formula 1 title race. Neither has been afraid to get aggressive against each other on track, teeing up an enthralling contest as the year unwinds. But how long will their battle remain clean? Jonathan Noble ponders that exact point

Formula 1
May 13, 2021
How Brabham’s one-hit wonder was boxed into a corner Prime

How Brabham’s one-hit wonder was boxed into a corner

The Brabham BT46B raced once, won once, then vanished – or did it? STUART CODLING reveals the story of the car which was never actually banned…

Formula 1
May 11, 2021
The changes Barcelona needs to provide a modern-day F1 spectacle Prime

The changes Barcelona needs to provide a modern-day F1 spectacle

Formula 1’s visits to Circuit de Barcelona-Catalunya over recent years have been met with familiar criticisms despite tweaks here and there to the track to improve racing. With the 2021 Spanish Grand Prix largely going the same way, proper solutions need to be followed to achieve F1’s wider targets

Formula 1
May 10, 2021
Spanish Grand Prix Driver Ratings Prime

Spanish Grand Prix Driver Ratings

Often described as Formula 1's laboratory, the Circuit de Catalunya-Barcelona gave the clearest demonstration yet of the pecking order in 2021. And it's the key discrepancies from that order which illuminate who is excelling, and who needs to hit the reset button.

Formula 1
May 10, 2021
How Red Bull's deja vu set Hamilton on the winning path in Spain Prime

How Red Bull's deja vu set Hamilton on the winning path in Spain

An aggressive first corner move from Max Verstappen appeared to have set the Red Bull driver on course for victory in the Spanish Grand Prix. But canny strategy from Mercedes - combined with the absence of Red Bull's number two from the lead group - allowed Lewis Hamilton to pull off a demoralising reversal

Formula 1
May 10, 2021
The Barcelona practice times that prove Red Bull has hidden pace Prime

The Barcelona practice times that prove Red Bull has hidden pace

Lewis Hamilton led the way in Friday practice for the 2021 Spanish Grand Prix, but there was one major encouraging sign for Red Bull. However, making good on that gain will require Max Verstappen to avoid repeating a mistake that left him well down the FP2 order...

Formula 1
May 7, 2021
Why McLaren doesn’t doubt Ricciardo can escape his ‘dark’ place Prime

Why McLaren doesn’t doubt Ricciardo can escape his ‘dark’ place

Three points finishes from as many starts represents a decent opening innings on paper, but Daniel Ricciardo has endured a tough start to his McLaren career - only magnified his teammate's excellent form. Yet both he and the team have good reason to expect a turnaround soon.

Formula 1
May 6, 2021
What needs to “change” for Red Bull is ending Verstappen’s errors Prime

What needs to “change” for Red Bull is ending Verstappen’s errors

OPINION: Going up against the dominant force of Mercedes and Lewis Hamilton was always going to demand the best from Red Bull and Max Verstappen. But after making a couple more errors during the Portuguese Grand Prix, the Dutch driver showed there's a small gap he still needs to close in the 2021 Formula 1 title fight.

Formula 1
May 5, 2021