Force India creditors already paid by Lawrence Stroll

by Findlay Grant
Lawrence Stroll - Part Owner - Racing Point Force India F1 Team

Businessman Lawrence Stroll has already paid most of the amount which was owed to the creditors of Racing Point Force India F1 Team before it went in to administration.

A sum of £90m was paid to the creditors, which enabled Stroll, alongside his associates, to create a new company, and get the revived team back on the grid.

This move is different due to the original team still being in administration: the £90m would be held as part of a legal process, which could take months to run its course, after which it would then be used to pay the creditors.  It will also mean that Stroll gets his money back.

“It’s important to note that the current shareholders have taken all the risks for the creditors” said Team Principal Otmar Szafnauer, speaking in an interview with Motorsport.com.

“And have put in extra money such that the creditors can be paid off immediately, not at some future date, post-administration.  That can take one or two years sometimes.” he added.

Szafnauer believes that Stroll has done what is right for the team.

“Lawrence wanted to do what’s right by the suppliers that have supported us, and a lot of them are industry suppliers, who don’t just supply us, but other teams in the paddock.

“And he thought it was right to take care of those people, by guaranteeing that they get 100% of their debt, and in a timely fashion.”

He believes that the process could be finalised this week, a mere two months after Stroll bought the team over.

“We’re going through all of them, just as they come up, so probably 100% if not 95% of them will be paid by the middle of October.

“That’s not usually something which happens in administration, and it’s something that we should take note of, and also thank the new shareholders for – not me thanking them, but all the creditors getting paid off early.”

He added: “It takes that worry completely away.”

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