Force India creditors already paid by Stroll

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.

Force India creditors already paid by 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."

shares
comments
The real barriers to women reaching F1

Previous article

The real barriers to women reaching F1

Next article

Albon emerges as favourite for Hartley's Toro Rosso seat

Albon emerges as favourite for Hartley's Toro Rosso seat
Load comments
The final throes of Brazil's fleetingly successful F1 team Prime

The final throes of Brazil's fleetingly successful F1 team

Emerson Fittipaldi is better remembered for his Formula 1 world championships and Indianapolis 500 successes than for the spell running his eponymous F1 team. Despite a hugely talented roll call of staff, it was a period of internal strife, limited funding and few results - as remembered by Tim Wright.

Why McLaren's expanding agenda will benefit its F1 resurgence Prime

Why McLaren's expanding agenda will benefit its F1 resurgence

In the 1960s and 1970s, McLaren juggled works entries in F1, sportscars and the Indy 500 while building cars for F3 and F2. Now it’s returning to its roots, expanding into IndyCars and Extreme E while continuing its F1 renaissance. There’s talk of Formula E and WEC entries too. But is this all too much, too soon? Stuart Codling talks to the man in charge.

Formula 1
Oct 17, 2021
How Tsunoda plans to achieve his F1 potential Prime

How Tsunoda plans to achieve his F1 potential

Yuki Tsunoda arrived in grand prix racing amid a whirlwind of hype, which only increased after his first race impressed the biggest wigs in Formula 1. His road since has been rocky and crash-filled, and OLEG KARPOV asks why Red Bull maintains faith in a driver who admits he isn’t really that big a fan of F1?

Formula 1
Oct 15, 2021
The danger of reading too much into F1's clickbait radio messages Prime

The danger of reading too much into F1's clickbait radio messages

OPINION: After Lewis Hamilton responded to reports labelling him 'furious' with Mercedes following his heated exchanges over team radio during the Russian Grand Prix, it provided a snapshot on how Formula 1 broadcasting radio snippets can both illuminate and misrepresent the true situation

Formula 1
Oct 14, 2021
How F1’s pole winner approach undermines drivers Prime

How F1’s pole winner approach undermines drivers

OPINION: Valtteri Bottas is credited with pole position for the 2021 Turkish Grand Prix, despite being beaten in qualifying. This is another example of Formula 1 and the FIA scoring an own goal by forgetting what makes motorsport magic, with the Istanbul race winner also a victim of this in the championship’s recent history

Formula 1
Oct 13, 2021
Turkish Grand Prix driver ratings Prime

Turkish Grand Prix driver ratings

On a day that the number two Mercedes enjoyed a rare day in the sun, the Turkish Grand Prix produced several standout drives - not least from a driver who has hit a purple patch of late

Formula 1
Oct 11, 2021
The hidden factors that thwarted Hamilton's bid for Turkey glory Prime

The hidden factors that thwarted Hamilton's bid for Turkey glory

Starting 11th after his engine change grid penalty, Lewis Hamilton faced a tough task to repeat his Turkish Grand Prix heroics of 2020 - despite making strong early progress in the wet. Instead, his Mercedes teammate Valtteri Bottas broke through for a first win of the year to mitigate Max Verstappen re-taking the points lead

Formula 1
Oct 11, 2021
How pitstops evolved into an F1 art form Prime

How pitstops evolved into an F1 art form

A Formula 1 pitstop is a rapid-fire blend of high technology and human performance. PAT SYMONDS describes how the science of margin gains makes stops so quick

Formula 1
Oct 10, 2021