Second Formula One Team Seeks Bankruptcy Protection

The U.K.-based Formula One team Marussia filed for the equivalent of Chapter 11 bankruptcy Monday, joining Caterham as the circuit’s second team to seek protection from creditors in less than a week.

Administrators from London-based restructuring firm FRP Advisory said the Marussia Formula One team was placed in administration, a process similar to Chapter 11 in the U.S., on Monday. In a statement, FRP Advisory partner Geoff Rowley said the team would skip the United States Grand Prix, scheduled for this weekend in Austin, Texas.

“Following Austin, there are two further rounds of the 2014 championship remaining, in Sao Paulo and Abu Dhabi, and the team’s participation in those races will depend on the outcome of the administration process and any related negotiations with interested parties in what is a very limited window of opportunity,” Mr. Rowely said.

The team will continue to operate while the administrators “assess the longer term viability of the company in its present form,” Mr. Rowley said.

Marussia is the second Formula One team to seek protection from creditors in recent days. Caterham Sports Ltd., the owners of the Caterham Formula One team, on Friday handed over the company to administrators from London accounting firm Smith & Williamson.

The administrators are seeking a buyer for Caterham’s Formula One license, its race cars and property plus its workforce and technical support staff based in Oxfordshire.

The Caterham administrators said Friday that Formula One magnate Bernie Ecclestone has agreed to support their bid to sell the team to a party with the financial strength to sustain it into the future.

Both Marussia, formerly Virgin Racing, and Caterham, formerly Lotus Racing, joined the Formula One in 2010. In 2012, Virgin took on the name of major shareholder Russian sportscar maker Marussia.PLC. The same year Team Lotus changed its name to Caterham, the sportscar maker owned by team founder Mr. Fernandes.

Mr. Fernandes sold the team this summer to consortium of Swiss and Middle Eastern investors.

Both teams have enjoyed only limited success, with Marussia gaining its first world championship points in this year’s Monaco Grand Prix. Caterham has been shut out in 93 race outings, according to Formula One.

Write to Patrick Fitzgerald at [email protected]. Follow him on Twitter at @PatFitzgerald23.