The company, trading as The Marussia F1 Team, participated in the Formula One World Championship. Its primary source of funding was its shareholder, with little funding generated from sponsorship. The shareholder had tried to sell the team without success and was unwilling to inject further funds. With no further investment and no parties willing to buy the company, the directors instructed FRP and took steps to place it into administration.
FRP Partners Geoff Rowley and Geoff Carton-Kelly were appointed joint administrators of the company and maintained an ongoing dialogue with several interested parties in an attempt to save the team. Despite challenging conditions, the team remained operational for a short period while all options were explored.
Extensive discussions were held with potential investors, although no satisfactory offer or strategy was initially presented. This was further complicated by the sporting rules under which Formula One teams are regulated, and their interaction with insolvency law.
On this basis most staff were made redundant. One potential solution was the proposal of a company voluntary arrangement (CVA), which was allowed within the constraints of the sporting regulations and would enable the company to remain solvent. In conjunction with an interested party, the joint administrators proposed a CVA, which would result in a better return to creditors than liquidation, more employees’ jobs saved, and enabling the team to continue.
Geoff Rowley and Geoff Carton-Kelly were appointed as Supervisors of the CVA, and managed the process until the company was successfully returned to solvency and the CVA completed. The team was able to return to racing in the Formula One World Championship.
The team was able to return to racing in the Formula One World Championship.Geoff Rowley Restructuring Advisory