The Manor Formula 1 team is on the brink of collapsing into administration, putting hundreds of jobs at risk.
According to reports from the BBC and Sky News the team, which has been bankrolled for the last two years by Stephen Fitzpatrick, an energy industry executive, is lining up FRP Advisory to act as the administrator.
Efforts will continue to find a buyer to enable Manor to compete in the 2017 F1 world championship, but ongoing discussions with a number of prospective investors have so far failed to result in a deal.
Sources said that staff at Manor’s headquarters were expected to be informed about the developments later on Friday morning.
Approximately 200 people work for the team.
An insider said the entity which would be placed into administration – barring a last-minute rescue deal – would be Just Racing Services Limited, which operates the Manor F1 team.
Manor Grand Prix Racing Limited, which holds the rights for the team’s participation in F1, will continue to trade, the person added.
The prospect of another financial collapse in F1 comes as Liberty Media prepares to complete a takeover deal for the sport, with executives floating the idea of a spending cap to be introduced in the coming years.
Manor finished in 11th and last place in the 2016 Constructors’ Championship, meaning it missed out on millions of pounds in prize money.
Testing for the new season, which was due to get underway on February 27, would place a further cost burden on Manor which it is currently unable to fund.
Neither Manor nor FRP could be reached for comment.