Vijay Mallya co-owned Force India will now function as a normal administration after a High Court hearing in London on Friday. Mallya said that the Formula 1 team’s staff that driver Sergio Perez and sponsor BWT are behind the legal proceedings which led to the team being placed in administration.
Vijay Mallya’s financial woes are building up like a pile of bricks ever since he fled the country last year. Force India, the Formula 1 team co-owned by the Indian businessman is the latest in a long line of casualties as a direct result of the financial mismanagement of the eccentric Mallya. A High Court in London has put Force India into administration, effective immediately after a hearing was convened on Friday. Rumours of a possible takeover have already made the rounds as deputy team principal Bob Fernley confirmed to BBC Sport that the High Court had appointed an administrator.
Force India had earlier confirmed that they faced a "critical period" as financial problems threatened the team. At least three potential buyers are said to be weighing in on a purchase of the Silverstone-based outfit.
"We shall be engaging with key stakeholders on an urgent basis to secure the best outcome for creditors. In the meantime, the team will continue to operate as normal including racing in Hungary this weekend. Our aim is for business as usual whilst we assess options to secure the future of the team," aid the joint administrator Geoff Rowley in a statement issued by an FRP advisory.
Meanwhile, Mallya said that the Formula 1 team’s staff that driver Sergio Perez and sponsor BWT are behind the legal proceedings which led to the team being placed in administration after yesterday’s ruling. In addition to this, a source told Reuters that second driver Esteban Ocon, who has been linked with a move to Renault was now a free agent under the terms of the administration.
Mallya has been on a "political witchhunt" as he said that he was seeking to sell assets worth about 139 billion rupees ($2.3 billion) to repay creditors. But he also added that the team will keep running and its holding company will hold sway in a decision on its future.