Cape Town - The Force India Formula 1 team has been rescued from administration by a group of investors led by the billionaire father of Williams driver Lance Stroll.
The team was placed into administration ahead of the recent Hungarian Grand Prix amid severe financial problems at the request of its creditors, which included one of its drivers Sergio Perez.
The deal reached by the Stroll-led consortium allows the team to satisfy the creditors’ demands, meaning the team can race again when the F1 season resumes at the end of the month in Belgium. It also secures the jobs of Force India’s 405 employees.
The consortium consists of Canadian entrepreneur and Power Corporation president Andre Desmarais, Jonathan Dudman of Monaco Sports and Management, head of Michael Kors John Idol, John McCaw Jr, financial expert Michael de Picciotto, and Stroll's associate Silas Chou.
Speaking about the deal, Force India’s operations chief Otmar Szafnauer said: "This outcome secures the future of the Force India team in F1 and will allow our team of racers to compete to our full potential."
"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."
"All creditors will be paid in full, all jobs will be preserved, and the team will have significant funding to invest in its future,” said Administrator Geoff Rowley.
"Funding to support the team will be made available from today, and significantly more will be available once the company emerges from administration, which we expect within the next two to three weeks."
Force India finished fourth in last season’s Constructors' Championship.