Arrows in deep trouble.

News that the OrangeArrows team could join Prost Grand Prix and become the second F1 team to face bankruptcy this year has emerged today [Thursday].

At the London High Court, Mr Justice Lightman, according to reports by Reuters said that the company was in a "dire financial position."

Lawyers for the team added: "Short of a miracle. At the present time the prognosis is that the company is doomed."

"Arrows may have to go into liquidation or administration unless a miraculous source of funding helped it pay for new Cosworth engines to enable it to compete at Silverstone."

It is believed that the problems stem from an injunction issued by investment bank Morgan Grenfell. The injunction is stopping Arrows from proceeding, with lining up a new investor.

A statement from the team is due later this afternoon.

Thus far though Arrows has yet to be seen at Silverstone today, and the garages doors have remained shut all day. This in itself is also a problem, as teams are meant to present their cars for scrutineering before 4 pm [BST].

Cosworth commercial director Bernard Ferguson told BBC Sport Online: "All I know is we need quite a few million dollars and we can't give them an engine until we are paid. They will not be in a position to run at Silverstone until we are paid."

"They believe they will be in a position to pay for the engines, and we want to support them because we believe in them and want to work with them. But we are not prepared to be their sponsor."

More news as we get it...