Losing F1 teams is not good for most paddock folk. Even their rivals whio have one less competitor to battle with for constructors money, suffer when a Formula One team goes to the wall.
The fallout from Caterham and Marussia’s woes in 2014, was that suppliers have reduced their credit offerings and in some cases insisted on cash up front from the smaller teams before they are prepared to begin subcontracted work.
Shifting cash flow forward 90 days is a huge undertaking for an operation that spends even $70-90m a year. Particularly when the funding support from FOM for entrance and prize money is paid in equal instalments between March and November each year.
Lotus has been the latest team to suffer from cash flow problems. Unlike Force India they brought their 2015 car to the grid early in the season, but appear to now be paying the price.
A winding up petition was lodged 2 weeks ago in the High Court by a creditor who will be owed monies substantially beyond the credit agreement period.
The hearing has now been adjourned and this creditor has been satisfied according to Lotus.
However, there are several other unsatisfied judgements for payment against Enstone for monies varying from £1571 to £29,672 according to Autosport.
This numbers are not huge, and if the team cuts its cloth accordingly, Lotus should be able to satisfy their creditors in full by the end of the summer recess.
The fact that creditors are petitioning for payment of an F1 team when the sums are even less than £100,000 just demonstrates the nervousness amongst subcontractors of the industry that there is sufficient funds to pay for their services rendered.