Force India Rescued from Administration by Stroll Family

A few weeks ago, during the Hungarian GP weekend the Force India F1 team went into administration. Now, the team has been pulled from the abyss by a consortium of investors led by Lawrence Stroll.

On Tuesday evening, administrators analysed a number of offers for the business. The team were in danger of winding up ahead of the Hungarian Grand Prix. Especially after driver Sergio Perez brought legal action against it over unpaid dues.

Under the agreed terms, the new investors will ensure that all creditors are paid in full. They will also safeguard all 405 jobs at the team. The momentous news will end months of speculation about Force India’s future.

Force India COO Otmar Szafnauer worked alongside the administrators to look for new investors. He was understandably delighted with the outcome.

“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,” Szafnauer said. “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.

“At Force India, our expertise and commitment has meant that we have always punched above our weight and this new investment ensures that we have a bright future ahead of us. I also would like to thank Vijay, the Sahara Group and the Mol family for all of their support and taking the team as far as their circumstances would allow.”

Joint administrator Geoff Rowley added: “It is rare that a company can be rescued and returned to a position of solvency. The quality of the various interested parties has been impressive and required careful consideration as the administration has progressed. Having followed a robust process, in the end we were left with a highly-credible offer to save the company and restore solvency. All creditors will be paid in full, all jobs will be preserved, and the team will have significant funding to invest in its future.

This could also mean that Lawrence’s son Lance could have his application to Force India fast-tracked.