Ecclestone reaches banks agreement

Bernie Ecclestone and three banks have agreed an out-of-court settlement in the latest instalment in the battle for control of Formula One.

The banks, Lehman Brothers, Bayerische Landesbank and JP Morgan, won the last legal battle to seize control of Ecclestone’s Formula One Holdings company.

The three were due to go head to head with Ecclestone and his Formula One Administration company in the High Court to establish control over another facet of the Englishman’s empire.

But an agreement was reached today to avoid a court date in May, with no indication as yet as to the details.

All parties requested an adjournment yesterday to discuss and out-of-court agreement, which came this afternoon.

The three banks have been battling for what they see as their rightful control over Formula One.

They acquired 75% of Ecclestone’s SLEC group when German media giant Kirch went bust in 2002.

The SLEC group controlled commercial rights to Formula One but despite their majority shareholding, Ecclestone resisted attempts from the banks to take seats on the board of FOH.

A High Court judge ruled against Ecclestone earlier this year and the current dispute is an extension of that disagreement, with the banks now turning their attention to FOA, another of the myriad of companies controlling Formula One.

Ecclestone is fighting a battle on two fronts, with his legal clash with the banks coming at the same time as he attempts to retain his Formula One empire in the face of opposition from the sport’s major manufacturers.

They have joined together to demand greater commercial revenue from Ecclestone and are planning to run a rival series in 2008, after their deal with the Englishman expires.

More details on their plans are expected in the next month, with detailed proposals for technical regulations being drawn up at the moment.

Ecclestone’s long-term ownership of Formula One’s commercial rights would count for little if all 10 teams moved to an alternative series but he has the support of Ferrari.

He has spent recent weeks attempting to convince more of the rebel nine teams to join him until 2012 but has had no success so far.