Morgan Grenfell has become the latest claimant to take the Arrows F1 team to court, claiming its investments were weakened by Arrows' financial problems. The investment bank reportedly claims that Arrows was in trouble as early as last year and there had been talks about financial restructuring. Arrows claim the talks led to a legal agreement between the two parties but Mogan Grenfell denies that happened.
Lawyer Ewan McQuater, who is representing Morgan Grenfell, told Reuters: "Steps were taken in breach of the claimants' rights under the existing finance documents, and they have potentially caused serious prejudice to their interests."
Arrows' entry to the 2003 F1 Championship was rejected by the FIA recently and negotiations with a German based investor seem to have broken down. Team staff were made redundant after the rejection and now parent company Tom Walkinshaw Racing (TWR) will also make redundancies. According to the British press, TWR is to cut around a quarter of its staff although it claims the cuts are not related to the Arrows situation.