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TRAC is officially dead, from Traczone.com
Team Sports Entertainment, Inc.
(August 26, 2003 - CHARLOTTE, NC) Team Sports Entertainment, Inc. (NASDAQ: TSPT.OB) announced today, effective immediately, it has discontinued its efforts to develop, own, operate and sanction an automotive racing league. As previously discussed, the Company’s business plan provided that its ability to continue to pursue the creation of a racing league and begin racing in May 2004 would depend upon its successfully selling operating rights for six teams and sufficient league sponsorship packages by September 30, 2003. Following extensive and ongoing discussions between management and the Company’s various consultants, the Company’s Board of Directors has concluded that such sales are not possible within the necessary time period.
The Company has significantly reduced operating overhead by reducing the number of employees to two and eliminating all expenses unrelated to minimal administrative operations. Management believes that the Company currently has sufficient cash to pay all amounts owed to trade creditors and continue minimal operations for approximately four to six weeks.
Management intends, in the near future, to invite the Company’s principle creditors, the holders of the Company’s Senior Secured Convertible Promissory Notes, to discuss whether agreement can be reached to modify the payment and other terms of the Notes in a manner that will allow the Company to avoid bankruptcy. Management believes that the Company will be unable to make certain payments due under the Notes on August 31, 2003. There can be no assurances regarding whether such discussions will occur or their outcome.
Based on these discussions and other such analysis that it deems appropriate, the Board of Directors will determine the next steps to be taken by the Company. These steps may include developing a new business, identifying any available combination opportunities, bankruptcy or dissolution
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