F1: Force India Saved From Administration By Lawrence Stroll-Led Consortium

The Force India Formula 1 team is set to be rescued from administration by a group of investors led by Lawrence Stroll. He is the father of Lance Stroll currently a driver with the Williams Martini Racing team.

The Silverstone-based team entered administration two weeks ago, just prior to the Hungarian Grand Prix, due to severe financial problems. Sergio Perez, a driver with Force India, is said to have started proceedings to enter administration in order to fend off a petition to wind up the operations by another creditor, according to BBC Sport.

However, the team of investors led by Lawrence with the backing of the F1 team’s management have reached an agreement with the team’s administrators. This will ensure they continue to race for the remainder of the season, which resumes Aug. 26 at the Belgian Grand Prix after the conclusion of the ongoing summer break. The agreement also ensures the safety of 405 jobs in the team’s Silverstone base.

Apart from Lawrence, Sky Sports reports that the other investors in the consortium include Canadian entrepreneur Andre Desmarais, Jonathan Dudman of Monaco Sports and Management, fashion business leader John Idol, telecommunications investor John McCaw Jr., financial expert Michael de Picciotto, and Lawrence's business partner Silas Chou.

"This outcome secures the future of the Force India team in Formula 1 and will allow our team of racers to compete to our full potential," Force India operations chief Otmar Szafnauer said, as quoted on Sky Sports F1. "I am delighted that we have the support of a consortium of investors who believe in us as a team and who see the considerable business potential that Force India has within F1 now and in the future."

The administrator, Geoff Rowley, also confirmed that all the creditors will be paid in full and that there will considerable investment available for the team to invest in securing its future on the F1 grid.

"All creditors will be paid in full, all jobs will be preserved, and the team will have significant funding to invest in its future,” Rowley said after the agreement was reached with the investors.

"Funding to support the team will be made available from today, and significantly more will be available once the company emerges from administration, which we expect within the next two to three weeks."

Force India finished fourth in the Constructors’ championship in the last two seasons, but are currently in sixth place after a difficult start to the campaign. Perez and Esteban Ocon are the drivers contracted for the current season, but are yet to be confirmed for 2019.

Lawrence leading the consortium that is helping the team come out of administration could also have an effect on the driver market. The Canadian billionaire’s son Lance could be brought in from Williams for a drive with Force India in 2019.