NOVEMBER 22, 2001
Prost in "redressement judiciare"
PROST GRAND PRIX was formally placed in receivership by the Tribunal de Commerce de Versailles on Thursday morning. This means that the running of the business will now be overseen by a court-appointed administrator for a six month "period of observation" during which it will be established whether the company can be saved.
The receiver appointed is Maitre Franck Michel, who is what is known as an "administrateur judiciaire", who is based in Versailles.
All decisions taken must now be agreed by Michel and he has the right to sell the team if he believes this is the right course of action to ensure that the team's creditors are repaid.
According to French press reports the team has around $30m of debt.
Prost met his staff on Wednesday evening to explain what was happening but the team should continue to operate as normal. The team does not currently have an engine deal sorted out with Ferrari and although it has made an entry in the 2002 FIA Formula 1 World Championship it needs to find a large sum of money quickly if it is to survive.
The most likely result is that people who are interested in acquiring the team will now deal with Michel and will probably try to purchase the company which has made the entry (and which therefore gains the TV income) and some of the assets of the team and will then set up a new operation. This may end up being in Paris.
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