Hungarian Grand Prix: Force India placed into administration but hope to see out the rest of the season as takeover looms

Lance Stroll’s billionaire father is among five interested parties in launching a takeover bid for the Silverstone-based team, who will still compete in Hungary this weekend

(Getty)

Force India have been placed into administration ahead of the Hungarian Grand Prix, but the Formula One team look set to continue this season as investment is “imminent”, according to their current chief operating officer.

It’s understood that current driver Sergio Perez partially brought about case as he is owed more than £3m in sponsorship deals, while engine suppliers and current F1 constructors’ championship leaders Mercedes are owed around £11.5m.

Although Force India will see out this weekend’s grand prix at the Hungaroring, a court hearing is scheduled to take place during the summer break that will determine their future.

But The Independent understands that there are five interested parties looking at takeover bids in the coming days, one of which is headed up by Williams driver Lance Stroll’s billionaire father, Lawrence Stroll.

The chances of the current owners being brought out look likely after COO Otmar Szafnauer said on Friday evening that negotiations are already underway.

“I think (investment) is imminent,” Szafnauer said.

“I know there’s discussions going on in the background and I’m not privy to those because it’s a shareholder issue.”

He added earlier this week: “Within a week or at the most two, our financial future will become more clear and I believe much more secure.”

Force India have performed well above their weight in recent seasons, having been limited to a modest budget in comparison to their closest rivals such as Renault and McLaren. Their co-owner, Vijay Mallya, is fighting an attempt by India to extradite him from the United Kingdom to face charges of fraud. A group of Indian banks are looking to recover more than $1bn of loans that were granted to his Kingfisher Airlines business, which no longer exists.

Mallya denies the charges, and has described the case as “a political witchhunt”. The Indian businessman is looking to sell assets worth more than $2m to repay creditors.

Force India co-owner Vijay Mallya has claimed the fraud case against him is a 'political witchhunt' (Getty)

But it’s hoped that this will not have a knock-on effect for the F1 team, with Szafnauer admitting that limited financial resources during the European winter months are starting to ease.

“The more money you have in this game, usually the better you do. But hopefully that will be solved soon and we’ll get back to operating in the normal manner that we are used to,” he added. “We are just in this critical period, which might last a week or two. We have to keep our heads down, do the best we can here, go enjoy our break, after the test, and then come back fighting thereafter.”