The Sahara Force India F1 team has officially entered into administration following a court hearing. Deputy principal Bob Fernley confirmed that the court has appointed an administrator for the team.

Earlier, chief operating officer Otmar Szafnauer had mentioned that entering some form of administration was inevitable.

As of now, Force India are in Budapest preparing for the Hungarian Grand Prix. Sources say that driver Sergio Perez triggered everything. The Mexican was owed more than $4 million through sponsorship deals.

Meanwhile, engine supplier Mercedes were owed around 13 million euros ($15.15 million). Even leading sponsor BWT were owed a hefty sum of money. The team have declined to comment on the matter as of now.

The Force India team was named on a wind-up list of companies issued by the Companies Court.

“Within a week or at the most two, our financial future will become more clear and I believe much more secure,” Szafnauer said.

There were suggestions that a ‘pre-pack’ agreement could be lined up for the team. This will be followed by a sale of the business and assets negotiated before the appointment of administrators. There will also be a change of ownership .

Some sources say that there were up to five interested parties to take ownership of the team. According to speculation, Lawrence Stroll, billionaire father of Canadian driver Lance, is willing to invest in Force India as part of a move for his son from Williams.

Szafnauer admitted that he did not know what the outcome of the situation would be. However, he said that administration was one of two potential ways to save the team.

On Thursday, Perez said that the situation was ‘critical’ and his own future was in doubt.

Szafnauer said that this critical period for the team could last a week or two. All they need to do is ride it out and do what they do best. After the summer break and they will surely come back stronger.