Consulting
Frpadvisory
Full Credential Description
The Marussia F1 Team faced significant financial challenges, primarily due to a lack of funding from sponsorships and the unwillingness of its shareholder to inject further capital after unsuccessful attempts to sell the team. This situation led the directors to place the company into administration, as there were no viable options for investment or acquisition. FRP, appointed as joint administrators, engaged in extensive discussions with potential investors while keeping the team operational for a limited time. The complexity of the situation was heightened by the regulatory framework governing Formula One teams and its interaction with insolvency law, which resulted in most staff being made redundant. To address these challenges, FRP proposed a company voluntary arrangement (CVA) that would allow the team to remain solvent while providing a better return to creditors than liquidation. This solution not only aimed to save jobs but also enabled the team to continue its participation in the Formula One World Championship. The outcome of the CVA was successful, with FRPs Geoff Rowley and Geoff Carton-Kelly overseeing the process until the company was returned to solvency. As a result, the Marussia F1 Team was able to resume racing, preserving its operational status and securing the future of its remaining employees.