Caterham Sports Limited - the company that builds the F1 outfit's cars - confirmed on Tuesday it had been placed into administration.
And now the beleaguered backmarkers may struggle to see out the 2014 season, with a potential sale to Engavest - a company registered in Switzerland - also now falling through.
A Caterham statement read: "On 29 June 2014, Caterham Enterprises Ltd, Caterham (UK) Ltd and Sheikh Mohamed Nasarudin (Seller) and their shareholders Tony Fernandes and Datuk Kamarudin Bin Meranun entered into a Sale and Purchase Agreement (SPA) with Engavest SA (Buyer) with regards to 1Malaysia Racing Team Sdn Bhd/Caterham F1 Team.
"Since the date of the Agreement, the Seller has refused to comply with its legal obligations to transfer their shares to the Buyer.
"The Buyer has been left in the invidious position of funding the team without having legal title to the team it had bought.
"This is in total contradiction to the Seller's press release of 3 October 2014 which stated that Mr Fernandes and his Caterham Group had no longer any connection with the Caterham F1 Team.
"The administrators of Caterham Sports Limited have been appointed on behalf of Export-Import Bank of Malaysia Berhad (Exim), a creditor of Mr Fernandes and the Caterham Group.
"The Buyer has no connection with Exim. Caterham Sports Ltd was a supplier company to the Caterham F1 Team.
"Very regrettably, the administrators' appointment has had devastating effects on the F1 Team's activities. Since their appointment, the administrators have released various press statements which have been severely detrimental to the management of the Caterham F1 team.
"After three months of operating the Caterham F1 Team in good faith, the Buyer is now forced to explore all its options including the withdrawal of its management team.
"Lawyers have been instructed by the Buyer to bring all necessary claims against all parties, including Mr Fernandes who, as an owner, will run the F1 operation."
Caterham came into F1 in 2012 after Fernandes bought out Lotus' place in the grid - the current outfit named Lotus in F1 is an off-shoot of the former Renault team.
They have struggled throughout their time in the sport, though, failing to register a single point in 55 races.