JANUARY 25, 2005
Another adjournment in the High Court
The battle for the Formula One group has been delayed until May 10 to allow the legal teams to prepare their cases. The details of the case are still not clear but centre on the single issue of whether or not Bayerische Landesbank, JP Morgan Chase and Lehman Brothers - which together own 75% of Formula One holding company SLEC and now control Formula One Holdings as well - have a right to control the Formula One operating companies: Formula One Administration (FOA) and Formula One Management (FOM). If they win this case it is possible that they might be able to take control of the whole business and appoint their own chief executive or allow Bernie Ecclestone to continue as an employee. Ecclestone is fighting the banks all the way but his uncompromising attitude and tactics appear to have hardened the resolve of the banks to get their way. In the circumstances it is not thought likely that there will be a compromise. The banks are in no particular hurry to win the fight as they are not affected by the fighting going on over the Concorde Agreement as Ecclestone's recent deal with Ferrari and the FIA has given the Formula One group what looks to be a much stronger position with regard to the GPWC.
However there remains the possibility that the banks might do a deal with the GPWC so as to have an alternative to Ecclestone if they do eventually win the legal fight.
|Print News Story|