Arrows is banned from the 2003 world championship due to its financial difficulties. An appeal is currently underway with PKF in discussion with directors at Arrows about getting involved in the procedure.
A positive result in this appeal is thought the best hope of selling the business as a going concern. However, with no current primary sponsor or contracted drivers it is unclear what chance such an appeal has. The company also recently laid off staff.
The failure to gain entry into this year’s championship has already cost Arrows one rescue package from German businessman Oliver Behring, who was acting for a group of Arab investors. Arrows is also being sued by former driver Heinz-Harald Frentzen for around £700,000 in back pay.
Philip Long of PKF said there had been interest from several parties about taking over all or part of the business but that discussions are still in the early stages.
‘The only time limit on reaching an agreement is the self-imposed one of the season’s start at Melbourne in March,’ said Long.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children