Authorities probe Caterham F1 collapse and attempted rescue
UK and Romanian investigations are underway into the 2014 collapse of Caterham F1 and the unusual circumstances of its attempted revival by the Engavest group.
Investigations by both UK and Romanian authorities are underway into the collapse of the Caterham Formula One team and the failed attempt to revive it in late 2014. The probes focus on the circumstances surrounding the team's sale and the unusual role played by its final director, Constantin Cojocar.
Caterham, which entered Formula One in 2010, ran into severe financial trouble by 2014. Founder Tony Fernandes, who had backed the team since its inception, decided to withdraw his support. As the team teetered on the brink, a group called Engavest emerged as a potential saviour. The group was advised by Colin Kolles, a former F1 team principal, but little was known about its backers or funding.
The situation became more opaque when Constantin Cojocar, a Romanian national known for his previous career as a footballer and his work as a cleaner at the team's Leafield factory, was registered as the sole director and shareholder of Caterham Sports Limited. The Times reported that both UK and Romanian authorities are now examining the events leading up to and following the collapse, including the attempted takeover.
Unusual leadership and financial distress
Cojocar's appointment raised questions given his lack of experience in Formula One or business management. He has since stated that he is cooperating with investigators and has faced personal financial difficulties as a result of the ongoing inquiries. According to his own account, he has travelled from Romania to London to speak with authorities and is under investigation in both countries.
The failed rescue left staff, suppliers and creditors in limbo. Caterham's closure followed a period of instability in Formula One's smaller teams, with other outfits also facing financial collapse around the same period. For more on the broader situation facing F1 teams at the time, see Concerns grow as third F1 team faces collapse threat.
Scope of the investigations
The UK and Romanian probes are reported to cover the circumstances of Caterham's collapse, the attempted Engavest takeover, and the appointment of Cojocar. The authorities are seeking to clarify who was behind the Engavest group, what funds were actually available, and whether any wrongdoing occurred during the transfer of ownership or the winding-up of the team.
At the time of its demise, Caterham owed money to a range of suppliers and staff. The sudden change of ownership and subsequent administration left many questions unanswered about the fate of the team's assets and liabilities.
No timeline for the completion of the investigations has been made public. The outcome may have implications for those involved in the failed rescue and for future cases involving financially troubled motorsport teams.
