The Force India team has been saved by a consortium led by billionaire Lawrence Stroll, the father of F1 driver Lance.
Force India’s future was thrown into doubt last month when the team was placed into administration due to debts owed.
The team’s financial troubles have been widely reported over the past few years with several parties linked to a buy-out, however, that never came to fruition.
That, though, finally took place on Tuesday evening.
The consortium, led by Stroll and supported by Force India’s ‘senior management’, agreed a deal with the joint administrators, appointed by FRP Advisory.
The deal has saved the 405 jobs in the F1 team and will ensure that all the team’s creditors are paid in full, with ‘ongoing funding guaranteed’.
“This outcome secures the future of the Force India team in Formula 1 and will allow our team of racers to compete to our full potential,” said Force India operations chief Otmar Szafnauer.
“I am delighted that we have the support of a consortium of investors who believe in us as a team and who see the considerable business potential that Force India has within F1 now and in the future.
“At Force India, our expertise and commitment has meant that we have always punched above our weight and this new investment ensures that we have a bright future ahead of us.
“I also would like to thank Vijay, the Sahara Group and the Mol family for all of their support and taking the team as far as their circumstances would allow.”
Administrator Geoff Rowley added: “All creditors will be paid in full, all jobs will be preserved, and the team will have significant funding to invest in its future.
“Funding to support the team will be made available from today, and significantly more will be available once the company emerges from administration, which we expect within the next two to three weeks.”
Stroll’s fellow investors are Canadian entrepreneur Andre Desmarais, Jonathan Dudman of Monaco Sports and Management, fashion business leader John Idol, telecommunications investor John McCaw Jr, financial expert Michael de Picciotto, and Stroll’s business partner Silas Chou.
The next step in the deal is to finalise the finer points including the final agreement to buy the team.