Formula 1 engine supplier Cosworth has announced it has terminated its contract with the defunct US F1 team. The news comes after the American squad liquidated its assets as notified by its announcement to creditors on May 19. Cosworth said it will now seek a settlement of the outstanding debts from the team.

"Cosworth has taken this step with great regret as it had been supporting US F1 over the last few months with regard to a proposed entry for the 2011 season, but US F1's decision has meant that Cosworth has no choice but to terminate," Cosworth said in a statement. "Cosworth is a significant creditor of US F1, and will therefore join the other creditors of the team in seeking settlement of outstanding debts from the managed disposal of the remaining assets of the team. "

US F1 gained an entry to compete in Formula 1 this year, but failed to put together a car in time to make the grid.