 | Will A1GP Survive the Economic Turmoil? |
07 Oct 2008 | A1podium Editor
I, like 99.9% of others, have no idea what the financial status of A1GP is.Although we too reported the problems that A1GP faced it seems to me that there are more stories continuing to be posted about their financial [guesswork] status and imminent failure.
As one of the many people who have money in banks, and investments, I am following the Global Financial Crisis very closely. Names that are 'Gilt Edged' have hit trouble, been gobbled up or just gone to the wall.
Some of these institutions are over 100 years established so if A1GP is in problems after just 4 years we shouldn't be surprised.
Will A1GP go to the wall?
Who knows!
I doubt that A1GP truly knows if they will survive but I am certain they will do everything that is humanly possible to do so -- in my opinion [hunch] they will!
Comments [1]
by Uppili @ 07 Oct 2008 12:57 pm
RAB capital owns only 60% of A1GP's shares. The real question is who owns the other 40%? Or if Sheikh Maktoum still owns at least a minority stake in A1GP, then A1GP is safe. The Middle eastern economies (Dubai, Bahrain, abu dhabi) have invested way too much money in motor sports that they will want this to go in smoke without seeing a profit.
If Sheikh Maktoum still owns a stake in A1GP or if the remaining 40% of A1GP shares are held by middle eastern investors, i can see them buying the rest 60% shares from RAB, if RAB wants to sell. A1GP seems to be in a position to break even or even make a profit this year. It would be highly foolish for any investor to pull the plug now.
If Sheikh Maktoum still owns a stake in A1GP or if the remaining 40% of A1GP shares are held by middle eastern investors, i can see them buying the rest 60% shares from RAB, if RAB wants to sell. A1GP seems to be in a position to break even or even make a profit this year. It would be highly foolish for any investor to pull the plug now.
