F1: Hope for Manor as takeover talks continue

Manor staff will be paid in full until the end of January as talks continue between the administrators and potential new owners of the team.

Having lost out on 10th place in the constructors' championship last season, Manor's operating company – Just Racing Services Ltd (JRSL) – entered administration on Jan. 6. FRP Advisory – the same company that was appointed administrator of the team two years ago – has been evaluating the situation while negotiating with potential investors, and has been able to ensure all staff members will be paid in full until the end of the month.

"I can confirm staff will be paid until the end of January," an FRP Advisory spokesperson told RACER.

The move is significant because an administrator has to make a decision regarding which staff are retained and who is laid off within 14 days of being appointed. Securing staff payments through to the end of January helps give a conducive backdrop to the ongoing discussions that are taking place about finding a solution to the current situation.

The spokesperson added "the administrators will continue with their ongoing financial review of the business over the coming weeks," to determine the course of action should a buyer not be found by the end of month.

With the spokesperson confirming "numerous other enquiries since the day of appointment," RACER understands talks have taken place with at least one consortium – believed to include a Far East backer – that came close to completing a deal to take over Manor before the team entered administration.

RACER has also learned work on testing and preparing a model suitable for entry in the 2017 season continues, with a request being made to the FIA for Manor to run a modified 2016 car if required.

While pre-season testing gets underway on Feb. 27, Manor can theoretically miss the first three races of the season and still return to the grid, but missing the first four races would result in the team losing its license to race in Formula 1.

Manor Grand Prix Racing Ltd, which holds the team's F1 entry, is not in administration. The preferred option is for the complete team and entry to be purchased, but there remains the possibility of putting together a deal to save the team – if not all the current assets – beyond the end of January as a result.