Marussia F1 to exit administration via CVA
04-Feb-2015The company ceased trading back in November, however the latest statement from the administrators reveals the F1 team is exiting administration and entering a Company Voluntary Arrangement on 19th February.
Administrators, FRP Advisory, cancelled an auction earlier this year to allow further discussions with an interested party. While these are still going, it looks like the company will have enough backing to exit administration via a CVA. This will help write off a proportion of debt owed to creditors, easing pressure on the company’s cashflow.
Even with investors, it remains to be seen if Marussia will be returning to Formula 1 this season as it still needs the other teams’ permission to use 2014 cars (originally planned to be auctioned).
Joint administrator, Geoff Rowley, said “Since the appointment of administrators, negotiations have taken place with a number of parties to try to secure a long-term solution for the team”.
“We can confirm that negotiations continue towards a longer term viable solution for the business and participation of a team in the 2015 season.”
A CVA is a formal deal between the company and its creditors whereby a proportion of debt is paid off over a number of years. It allows the business to restructure while legal actions can be stopped. If the company is exiting administration via CVA, directors can take back control of the business. If all goes to plan, Marussia will enter a CVA in February and will have a chance of competing in this season’s Formula 1.
Update 20th February - The CVA has been approved and the team will be participating in Formula 1 in 2015 under the name of Manor F1. Fantastic news!