SEPTEMBER 10, 2002
Arrows creditors line up
Although Arrows yesterday paid off one of its creditors, there are still eight others who have attached their claims to the winding-up petition which was to have been heard today. These are believed to include Cosworth Racing, Jos Verstappen, Heinz-Harald Frentzen, CSS Stellar (the marketing agency which did the team's deal with Orange) and a number of smaller firms. The decision by Tom Walkinshaw to pay off Champion Recruitment is a significant one for if the company becomes insolvent there are going to be questions about individual creditors receiving preferential treatment. Walkinshaw must be very confident that he can save the team because he must now legally pay off all the creditors in full if he is to avoid legal action.
It will be at least two weeks before anything can happen because in order for the next winding up hearing the petition must be advertised in the London Gazette and there must then be at least seven working days between the advertisement of the petition and the next hearing.
Walkinshaw's hope is that his talks with American millionaire Cal Smith will result in a solution which will enable him to keep the team going, apparently with more shares being issued so that Red Bull can take equity in the operation.