Force India was placed into administration on Friday, reportedly after Sergio Perez brought an application over a £3 million debt owed to him. It has long been known that the Formula 1 team is in financial trouble with rumours of a pending buy-out doing the rounds for months. The situation came to a head on Friday when the F1 team was placed into administration following a court hearing in London. “An administrator was appointed by the court for Force India F1 this evening,” deputy principal Bob Fernley to Reuters. According to reports the action was triggered by their driver Perez over an unpaid debt. Perez, who told journalists at the Hungaroring that Force India’s financial situation is “critical” is owed £3 million by the team. His legal team told the courts Force India “is or is likely to become unable to pay its debt”. The application was supported by Mercedes, who Force India are believed to owe around £9 million. Force India are hoping to announcement investment in the team in the coming weeks with Russian billionaire Dmitry Mazepin believed to be in talks with the midfield team. Follow all the action from the Hungarian Grand Prix via the PlanetF1 race centre.<doc-sep>Sergio Perez has revealed he was asked to help "save" Force India by taking legal action against the Formula 1 team that resulted in the company entering administration on Friday. Following long-running financial difficulties, Force India formally entered administration following a High Court hearing in London, with Perez listed as one of the creditors with an outstanding sum of over £3 million. Mercedes was also confirmed to be one of the creditors supporting the move into administration, with the team's engine supplier owed more than €10 million. The appointed administrators are now working to find a buyer or fresh investment for the team. Hungarian GP - Best Moments Video of Hungarian GP - Best Moments Speaking to reporters on Saturday evening, Perez said it was "extremely tough" to take the action, but revealed he was asked by a couple of team members to come forward and help save the operation, fearing it would go bust if it did not enter administration. "In the end, I ended up in the middle. We got to a point where action had to be taken, to protect the 400 people who work in the team," Perez said. "I should not really like to be involved in this, because at the end of the day, I’m just a driver, and I’m just here to drive. I tried to focus but then it got too much. "I was asked by a couple of members of the team to go ahead and save the team and protect the 400 people who were working there. For me, it was hard because emotionally and mentally, it’s really tough, I haven’t been able to focus on my driving, on being a racing driver. There were so many things out of that. "But the picture is much bigger than it looks at the moment. We might go into a painful period but the outcome will be really good for all the team." Perez said that although his backers were owed money from last year, a winding up order pushed through by another creditor had put the team at risk of going under and folding if it did not enter administration. "There was a winding-up petition from another customer, which would have closed down the team completely. Therefore I was asked to save the team, to pull the trigger and put the team into administration," Perez said. "It was nothing to do with my outstanding amounts. The only reason I have done it was to save the team and for the better future for the team." Perez said his heart was "broken" when he considered the possible implications on team owner Vijay Mallya, who continues to fight extradition to India over alleged financial irregularities. While he confirmed he has not spoken with Mallya since the court ruling, he is hopeful of a positive outcome for his team boss. "I hope that whatever happens, Vijay is happy with that and gets a good benefit," Perez said. "Secondly, I look to hopefully have a team that is more stable and can move on to the next level and can be a racing team. We were not a racing team anymore since the beginning of this. "I will be happy if we can get all in the whole group better, and hopefully be happy afterwards."<doc-sep>Last updated on .From the section Formula 1 Force India will compete in the remainder of the Hungarian Grand Prix weekend after being placed into administration on Friday Force India driver Sergio Perez says he started administration proceedings against the team to fend off a winding-up petition from another creditor. The Mexican told BBC Sport: "The team asked me to do it. Otherwise, it would have been very bad." Force India were put in administration by the High Court on Friday evening and are the subject of interest from several potential buyers. Perez said he wanted to help protect the future of the team. The 28-year-old, who has driven for Force India since 2014, was owed unpaid salary of several million pounds. His Mexican backers sponsor the team, and from that income the driver is meant to be paid his retainer. Perez said he started the legal proceedings "to look after the 400 people who work in the team". He added: "It was very tricky and difficult. Every day really counted and I was told to help the team, to secure those jobs and that is the main reason behind it. "It was a very difficult decision for me because I am in the middle of it, but the picture will look bigger in the near future." Speaking in a news conference, he added: "The bottom line is that we did it, or the team goes bust. Emotionally and mentally it has been really tough. I haven't been able to focus on being a racing driver." On Friday, former co-owner Vijay Mallya sent a message to friends, seen by BBC Sport, that said the team's operating company was the largest creditor, with debts owing of more than £159m. The largest external creditor is Mercedes, who are owed in the region of £10m in unpaid engine bills. Force India's problems arise from the legal issues of Mallya, who is fighting extradition to India on fraud charges, which he denies. Perez added: "I love Vijay, and my heart is really broken because I know this is not ideal in the short term for him, but the big picture is really different. "He's going through a very difficult time, not just legally but also financially. The last month or so has been extremely difficult. I don't think many racing drivers could have gone through this." Geoff Rowley, of administrators FRP Advisory, said he would be "engaging with key stakeholders on an urgent basis to secure the best outcome for creditors". In the meantime, the team will continue to operate as normal. There are said to be at least three potential buyers - two US consortiums and one Russian bid. An attempt by energy drink company Rich Energy to keep the team afloat under Mallya with a £30m sponsorship offer was rejected by the judge.<doc-sep>
Perez: I acted to save Force India and secure their future Sergio Perez said on Saturday he sent the Force India team he drives for into administration to save the jobs of 400 colleagues at the Silverstone based team. Perez said he was broken-hearted at having to make the claim for money owed, which put the British-based team in administration, but he insists it was not for personal gain. Perez told reporters at the Hungarian Grand Prix that he had endured a month of emotional and mental hell and his racing had suffered because of the team’s precarious financial situation. Force India, co-owned by embattled Indian businessman Vijay Mallya and fifth in the championship, were placed into administration by the London High Court on Friday. “I love Vijay. My heart is really broken because I know this is not ideal in the short term for him, but the big picture is really different,” said the Mexican. “The bottom line of this is that we do this or the team would have gone bust. That’s what I get from the lawyers and members of the team.” Going into administration effectively removes the immediate threat of closure and also overcomes the obstacle of shareholder resistance to a sale. Perez’s claim for money owed — some 4 million euros, mostly from last season — was supported by engine provider Mercedes and team sponsor BWT which says it is also owed significant sums. With up to five interested parties, a sale appears imminent, and the August break after Sunday’s grand prix gives the team breathing space to sort out its future before going racing again. “There was a winding-up petition from another customer which would have closed down the team completely. Therefore I was asked to basically save the team, to pull the trigger and put the team into administration” said Perez. “It has nothing to do with my outstanding amounts. The only reason I’ve done it is to save the team and for its better future,” added the driver, who is now in his fifth season with Force India. “I am sure everyone appreciates what I’ve done and if they don’t appreciate it right now, because a couple of members of the team don’t know the full picture, they will appreciate it in a week’s time or so.” Perez said he had struggled to keep his focus over the last month, even if the results had not betrayed the turmoil going on behind closed doors at a team that has struggled to pay its bills for some time. “Emotionally and mentally it’s really tough. I haven’t been able to focus on my driving and being a racing driver,” he declared. I’m not going through a good time at the moment.” Mallya, who has a 42.5 percent stake in the team, is fighting an attempt by India to extradite him from Britain to face charges of fraud, which he denies, with a group of Indian banks seeking to recover more than $1 billion of loans granted to his defunct Kingfisher Airlines. He has decried a “political witchhunt” and has said he is seeking to sell assets worth about 139 billion rupees ($2.03 billion) to repay creditors. Perez said of his boss, “He’s going through a very difficult time, not just legally but also financially.” “I hope that whatever happens, Vijay is happy with that and gets a good benefit from that. Secondly, I hope to have a team that is more stable and can go on to the next level and be a racing team. We were not a racing team since the beginning of the year,” added Perez.