Another F1 team heads for the pits: Force India future called into question after £38.5m loss
The future of Force India, the Northamptonshire-based Formula 1 team co-owned by Indian tycoon Vijay Mallya, has been called into question by its auditors after it posted a loss of £38.5million in its latest accounts.
F1 heads into today’s Brazilian Grand Prix in crisis after two teams – Caterham and Marussia – went into administration last month. Marussia ceased trading on Friday.
Though estimates say Mallya is worth $750million (£468million), his Kingfisher airline has been grounded since 2012 due to debt defaults.
Wrong turn: Force India reported a loss of £38.5million in its latest accounts
He owns 42.5 per cent of Force India, with 15 per cent in the hands of Dutch businessman Michiel Mol and the rest held by Sahara, the Indian conglomerate controlled by Subrata Roy.
The trio’s investment vehicle, Orange India Holdings, paid £17million to the team last year according to its accounts for the year to December 31, 2013.
However, its auditor, accountancy firm Grant Thornton, said there was no evidence that Orange India will receive the support it needs from shareholders and this affects the team’s future: ‘This material uncertainty may cast significant doubt about the company’s ability to continue as a going concern.’
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