P1 International goes off track

[Wizzo]

Damon Hill is facing the risk of substantial financial losses after the collapse of a supercar club he founded.

P1 International was set up by Hill and business partner Michael Breen in 2000. The ex-motor racing star sold out to Breen in 2006 but remains a creditor to the company.

P1 bought expensive high performance cars and rented them to members in exchange for an annual membership fee of £12,250.

Hill filed a legal petition to have P1 wound up last month, prompting Breen to put the company into administration in a bid to protect its assets.

"The value of the cars has fallen sharply and membership has dropped off," a source close to P1 said.

Hill filed a petition with the High Courts of Justice in London last month to close P1 in a bid to recover assets he claims are owed to him but his request was refused. It is unclear whether Hill and other creditors will receive any financial compensation following the administration.

In an email reportedly sent by Breen late last month, the P1 owner said Hill's petition had been unsuccessful but that "in order to protect P1 International it has been decided that the company should be placed into administration, to secure the club's long-term future".

Sources speculated that a potential sale had been held up after new parties expressed an interest in acquiring the company.