Force India in trouble ( again )

[MartG]

As they have so far failed to submit their 2008 accounts to Companies House, the first steps in striking them from the Register of Companies have been taken. If they don't sort themselves out in the next couple of months, then all their assets become Crown Property and the company is dissolved.

Deatils here http://www.pitpass.com/fes_php/pitpass_news_item.p...

[Jungles]

Not a big deal. They have an extension until the 25th of this month.

[Eric Mc]

Not a very good sign though. Why haven't they been able to submit their accounts within the 9 month window they are allowed?

[dirty boy]

Eric Mc said:

Not a very good sign though. Why haven't they been able to submit their accounts within the 9 month window they are allowed?

Not good at all.

Eric, perhaps you and I should an overture to prepare them next year, they'll probably struggle even more now they have less time.

Perhaps there are some odd disclosures to worry about, or the auditors aren't happy with certain things?

[Mazda Baiter]

Would I be cynical in thinking that any margin of profit that the company has made, Dodgy Vijay has skimmed off the top to pay off his own (rumoured) debts?

Mind you, if the team did become crown property, they could bring back Racing For Britain.

[Eric Mc]

It seems that there are two companies involved, Force India Formula One Limited and Force India Formula One Team Limited. Both companies are late filing their accounts which should have been submitted by 31 October 2009. They are now over three months late which is extreemely late by most standards.

[Eric Mc]

On the subject of Crown Property, it's not the company that becomes Crown Property but its assets. I wonder what assets are owned by either or both of these companies.

[Rollcage]

No smoke without fire?

[Mazda Baiter]

Eric Mc said:

On the subject of Crown Property, it's not the company that becomes Crown Property but its assets. I wonder what assets are owned by either or both of these companies.

From what I understand, the buildings (team HQ and the Brackley wind tunnel facility) are still owned by Eddie Jordan. This was one of the reasons that Midland bought, then sold quickly. I would imagine the assets are cars, parts, trucks, intellectual property rights and possibly most valuble of all, the FIA entry to F1.

[andygo]

Is he just a bit dodgy this Veejay fellah, or what?

A close relative of mine has met him for a meeting and wasn't overly impressed. Think of an Indian Dell Boy.....

[Mazda Baiter]

andygo said:

Is he just a bit dodgy this Veejay fellah, or what?

A close relative of mine has met him for a meeting and wasn't overly impressed. Think of an Indian Dell Boy.....

If it looks like a duck, quacks like a duck...

[skwdenyer]

andygo said:

Is he just a bit dodgy this Veejay fellah, or what?

A close relative of mine has met him for a meeting and wasn't overly impressed. Think of an Indian Dell Boy.....

He has obviously been successful at something; perhaps we just don't understand the cultural differences!

[Eric Mc]

skwdenyer said:

andygo said:

Is he just a bit dodgy this Veejay fellah, or what?

A close relative of mine has met him for a meeting and wasn't overly impressed. Think of an Indian Dell Boy.....

He has obviously been successful at something; perhaps we just don't understand the cultural differences!

It's amazing how some people can APPEAR to be successful.

Edited by Eric Mc on Saturday 6th February 22:17

[Jungles]

andygo said:

Is he just a bit dodgy this Veejay fellah, or what?

A close relative of mine has met him for a meeting and wasn't overly impressed. Think of an Indian Dell Boy.....

Name a multi-billionaire who isn't a bit dodgy, or have had to do pull some dodgy moves to get there.

Edited by Jungles on Saturday 6th February 23:26

[touring fan]

Well, I've said it before and I'll say it again...there is something not quite right about Force India.
A team owned by one of the richest guys on the planet, yet it constantly has financial issues?

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

[egomeister]

touring fan said:

Well, I've said it before and I'll say it again...there is something not quite right about Force India.
A team owned by one of the richest guys on the planet, yet it constantly has financial issues?

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

And as in that thread, 10 Pence Short's sums things up quite well.

I don't think Force India's issues are all that different to those experienced under Spyker/Midland/Jordan ownership, so perhaps some of the problems come with the place itself rather than the owner?

Motorsport teams are notoriously bad payers. Having said that the majority of f1 teams are pretty good these days as they realise that if you want suppliers to bend over backwards for you, you need to keep them on side by paying up promptly. I know of more than one place that won't do business with anything to do with Tom Walkinshaw, but most places aren't that bad now.

[touring fan]

egomeister said:

touring fan said:

Well, I've said it before and I'll say it again...there is something not quite right about Force India.
A team owned by one of the richest guys on the planet, yet it constantly has financial issues?

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

And as in that thread, 10 Pence Short's sums things up quite well.

I don't think Force India's issues are all that different to those experienced under Spyker/Midland/Jordan ownership, so perhaps some of the problems come with the place itself rather than the owner?

Motorsport teams are notoriously bad payers. Having said that the majority of f1 teams are pretty good these days as they realise that if you want suppliers to bend over backwards for you, you need to keep them on side by paying up promptly. I know of more than one place that won't do business with anything to do with Tom Walkinshaw, but most places aren't that bad now.

• Owing your engine supplier (Ferrari) millions, to the point where they took one of your drivers (Fisi) as part-payment of some of the debt.
• Owing your motorhome supplier hundreds of thousands, to the point where they were locked-out and it was being repossessed in the paddock.
• Taking out bank loans to fund the running of the team and because of those loans thus being forced to breakaway from FOTA at a critical time in the FIA/FOTA 'war'.
• Being known in the industry as the F1 team who are the very worst at keeping their suppliers waiting for many months for payment.
• Constantly having problems with filing your accounts and receiving a warning from Companies House.

Is this really how a well funded F1 team owned by one of the richest guys on the planet and sponsored by his multi-billion dollar companies is run?
I don't think so.....obviously there is a lot less money going into that team that what Mallya would like to everyone to believe.

Edited by touring fan on Sunday 7th February 11:17

[andyps]

touring fan said:

• Taking out bank loans to fund the running of the team and because of those loans thus being forced to breakaway from FOTA at a critical time in the FIA/FOTA 'war'.

That was the one which I found hard to understand. Whilst apparently very rich Mallya bought an F1 team using loans so restrictive it could have forced the team out of the effective business in which it was involved if that business were to change. Whilst I know nothing of the true financial state of his affairs it does appear that the way he is running the F1 team is on a very rocky financial footing.

The only thing that makes me think there could be something more substantial underneath is that McLaren have the technical partnership - I would expect McLaren to have been thorough in their checks before entering into such an agreement.

[Dracoro]

Jungles said:

andygo said:

Is he just a bit dodgy this Veejay fellah, or what?

A close relative of mine has met him for a meeting and wasn't overly impressed. Think of an Indian Dell Boy.....

Name a multi-billionaire who isn't a bit dodgy, or have had to do pull some dodgy moves to get there.

Warren Buffett.

[toppstuff]

Dracoro said:

Jungles said:

andygo said:

Is he just a bit dodgy this Veejay fellah, or what?

A close relative of mine has met him for a meeting and wasn't overly impressed. Think of an Indian Dell Boy.....

Name a multi-billionaire who isn't a bit dodgy, or have had to do pull some dodgy moves to get there.

Warren Buffett.

Warren does have a habit of talking up his own book. For example, talking down the banks during the peak of the credit crisis whenever interviewed, while at the same time investing in Goldman Sachs...

Allegedly. Of course.