Walkinshaw criticized by judge

Tom Walkinshaw, boss of the Arrows F1 team and Tom Walkinshaw Racing (TWR), both of which are now in the hands of receivers, was criticized by a judge for his poor business acumen during a hearing today. Companies from Morgan Grenfell and...

Tom Walkinshaw, boss of the Arrows F1 team and Tom Walkinshaw Racing (TWR), both of which are now in the hands of receivers, was criticized by a judge for his poor business acumen during a hearing today.

Companies from Morgan Grenfell and Deutsche Bank are suing Walkinshaw for compensation since Arrows went into liquidation -- they claim that they were secured creditors of Arrows and Walkinshaw had given them indemnity.

Walkinshaw had moved to reduce the charges against Arrows by claiming an agreement had been reached to reduce their liability and said the banks' agreement for indemnity had ended in July last year. High Court judge Mr. Justice Pumfrey ruled against Walkinshaw.

"Mr. Walkinshaw left me with the clear impression of a man who was in over his head," said the judge, according to Reuters. "He appeared to lack the clarity of thought necessary to follow a clear policy. He obviously had a high opinion of his own business abilities, but my impression was different."

Justice Pumfrey also said Walkinshaw's actions had been below standard in relation to what was expected from a managing director of a company and he had shown much disregard for the interests of Arrows' creditors. Despite that, the judge did not consider that Walkinshaw had acted dishonestly.

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About this article
Series Automotive , Formula 1
Drivers Tom Walkinshaw