Arrows applies for legal protection

After announcing that it was involved in signing contracts with a German based investor earlier this week, the Arrows F1 team has applied for administration -- legal protection -- while the deal is finalized. The team has been faced with 'winding...

After announcing that it was involved in signing contracts with a German based investor earlier this week, the Arrows F1 team has applied for administration -- legal protection -- while the deal is finalized. The team has been faced with 'winding up' orders from creditors who are seeking financial recompense.

Former Arrows drivers Jos Verstappen and Heinz-Harald Frentzen are believed to be two of those seeking damages: Verstappen was unceremoniously dumped by the team in favour of Frentzen at the start of this year and Frentzen then left the team later in the season when its future was decidedly rocky.

Engine supplier Cosworth is also thought to be pursuing monies owed by Arrows. Niki Lauda recently said that Arrows boss Tom Walkinshaw had reneged on a verbal agreement to pay money owing for the use of the Cosworth units this season.

Yesterday's hearing was adjourned when the application for administration was received and will be reviewed at a later hearing in December. Reportedly it could take several weeks to appoint an administrator, although if the deal with the German investor is finalized, administration will no longer be needed.

Arrows only have until tomorrow, 15th November to apply to the FIA to take part in next year's Formula One Championship.

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About this article
Series Automotive , Formula 1
Drivers Jos Verstappen , Heinz-Harald Frentzen , Niki Lauda , Tom Walkinshaw