Martin (frentzen) wrote in formula1,

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Make or break for Arrows today!

The Arrows Grand Prix team must settle the deal with American multi-millionaire Carl Smith today, or face a compulsory winding-up order in the English courts on Tuesday. Arrows had pinned it's hopes on the deal with Smith in the week before Spa, but a deal still remains unfinished.

If tomorrow arrives and no deal has been sealed, an official receiver will be appointed to look into the company's affairs and will then decide whether or not the company can be saved or whether it should be liquidated. This receiver will run the company, trying to clear debts. The next step would be to call in a liquidator who will try to realise the assets of the company and pay off as many of the liabilities as is possible.

Arrows were ordered to explain their actions and reveal the financial goings-on to the FIA in a letter last week. The FIA received the letter late on Tuesday and are still reviewing the situation.

It is not clear whether or not the Arrows team will race at Monza this weekend, or who will be driving the cars.
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