Arrows took a bank loan with HSBC in March of this year (2002), and part of the agreement was that the bank would be offered such a security on the loan. The agreement covers all the team assets apart from the Bedford wind tunnel, which was bought using differently sourced funds.
This effectively gives HSBC directoral control of the company, and normally means that there will be a sale of the team as a going concern. Under British law HSBC can remain in control for 3 months, after which it will have to decide whether to liquidate the team assets. This move also means that the administration petition is no longer necessary, but all the other cases including the winding up order brought by Heinz-Harald Frentzen will go ahead as planned.
This site hopes that the team is sold as a going concern and rebuilt in order to compete again in a few years time. One thing is for sure now, we have seen the last of Arrows and the Arrows cars - 2003 will be empty without them.
This bad news aside - have a Happy 2003 everyone.
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