Debts push Arrows to the edge
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Your support makes all the difference.Arrows have until 10am today to pay the $4.7m (£3.1m) they owe for their engines, otherwise they will be unable to compete in Sunday's British Grand Prix at Silverstone.
The Oxfordshire-based team are in danger of becoming the second Formula One team to fold this year following a High Court judgment yesterday that cut off a potential lifeline.
Arrows' plan to raise funds by selling their "prime asset'' – the rights to receive payments for racing in Formula One – to a new backer, Red Bull, was successfully contested in court by one of their creditors, Morgan Grenfell, which is anxious to protect its own investment.
The team's lawyer, Robin Potts QC, admitted his clients needed a "miracle'' to survive. They now face the prospect of having to go into administration or liquidation.
Tom Walkinshaw, the team principal, and his cars, were brought to the circuit last night. Arrows were given special dispensation to miss scrutineering yesterday but must present their cars for the routine pre-race checks at 10am.
However, unless they have settled their debts with Cosworth, suppliers of their engines, they will not have functioning cars to be scrutineered. The cars, still at the team's factory last night, are equipped with engines but cannot run without their electronic boxes, which Cosworth are not prepared to release until they are paid.
Niki Lauda, overlord of the Ford racing operation, which includes Cosworth, explained that Arrows were six weeks late with payment and had failed to meet three extended deadlines.
The Austrian, also team principal at Jaguar, said last night: "Normally Tom is a survivor but it looks pretty close this time. I want him to race but I cannot pay for his racing. I will get fired if I do. There can be no compromise because we have done that for three weeks.
"We're owed $4.7m. It's a lot of money. He's always late with payments. I did everything I could to help him. We agreed 14 June, then last Friday. This was missed so I said let's wait till the British Grand Prix, but the money must come before Silverstone. I was waiting for a cheque or a phone-call today, but nothing came. If he pays the money before first practice he will race."
Arrows' plight has come to a head six months after the French team, Prost, folded with debts of about £20m.
Lauda acknowledged: "This is exactly what Formula One does not need. Of course I feel bad but he's running his business, I'm running mine. I know Tom personally and I like him. He's a fighter. I tried to help him but there is a deadline.''
Walkinshaw has been endeavouring to attract new commercial partners and thought he had found a solution to his problem by bringing Red Bull on board. Income from television earns each team around £9m a year and that would have recompensed any new investor for paying off the engine bills. Morgan Grenfell opposed the deal and took the case to the High Court.
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