22/03/2005
NEWS STORY
At the High Court in London, lawyers have told Justice Peter Smith, the judge presiding over the legal case involving the three banks, Bayerische Landesbank, JP Morgan and Lehman Brothers, which own 75% of F1, and Bernie Ecclestone, that the parties are close to agreeing a deal.
Consequently, Justice Smith will hear a submission on Wednesday afternoon which could settle the issue and do away with the need for the hearing which was due to begin in May.
The battle with the banks is just one of the problems that Ecclestone has to deal with as he attempts to retain control of the sport. The other main battle involves the car manufacturers behind the proposed breakaway championship, the Grand Prix World Championship (GPWC).
An early settlement of the issue with the banks would leave him free to deal with the manufacturers, however it remains to be seen what the "deal" involves. There is the possibility that Ecclestone is buying out the banks, which got hold of their stake in F1 following the collapse of Kirch Media, however one would have to wonder how much money this involve and where he would get it from. On the other hand perhaps the banks have agreed a deal whereby in the long-term they buy Ecclestone's 25% of F1.
In all honesty there are many scenarios, and the best bet is to wait until Wednesday afternoon, in the hope that all will be revealed - a rare thing in F1 these days.