Bankruptcy hearing extended to January 28th (merged)

[Dov]

AR1 is reporting on their front page that there is a setback for CART in the bankruptcy hearing. Most of the time I am thankfull that I don't have a subscription to AR1, but today is not one of them....

[rush1]

http://motorsport.com/news/article.a...76&FS=CHAMPCAR

"January 28, 2004 has been set as the date that Judge Ottery will give his decision - a day of possible fireworks.

With the racing season only months away, the question to many fans is whether there will be a season opener in April at Long Beach or if that event will go the way of the original season opener. The St. Petersburg Grand Prix has already been postponed."

tick tock, tick tock...

[BootsOntheSide]

2 months will be plenty of time. There are already 12 entries in place, and many more which only need a few ts crossing. There's a TV deal, fans in waiting who have refused to support the IRL despite all its thrills, spills, glitz and stars, and lots of loyal smart wealthy men guiding the OWRS ship. Don't you naysayers get too excited. I notice that rush1 hasn't been around much recently - I guess the optimism was too much for you?

[Jay]

You should really have that heart of yours checked rush1...that doesn't sound good.

Typical legal system with the setbacks...knowing them they'll be 2 or 3 more delays. Thankfully CART has til April, and I'm still confident they'll have it sorted out by then. OWRS can make preparations for the 2004 season without this being finalised. It doesn't matter what happens, they're still going to have to fund most of the season out of pocket.

[GTRMagic]

Is the pocket big enough to do that?

Mr K of PK motorsport fame mentioned several times thru 2003 that his ChampCar team was hideously expensive...

[Jay]

Well I think they knew what they were getting into when they signed up, and I don't think they would have thrown millions of dollars at it (most of which they already won't get back) if they didn't think they had the money to continue it in one form or another.

[Dov]

People, I really want to be positive here, but WHAT ABOUT THE SPONSORS? It's mainly their money that runs any racing series and the longer this thing drags on, the fewer sponsors I see jumping on CART's bandwagon!?

[Dov]

CART's day in court, the saga continues
Racing series CHAMPCAR
Date 2003-12-30 (Indianapolis)

By Motorsport.com staff writers

Championship Auto Racing Teams, Inc.'s representatives and attorneys were in attendance today at the Birch Bayh Federal Building and Courthouse in Indianapolis for their emergency motion hearing after filing Chapter 11 papers on December 16, 2003.

The day before filing the Chapter 11 bankruptcy reorganization papers, CART reached an asset purchase agreement with Open Wheel Racing Series (OWRS). The agreement hinges on court approval.

Presiding Judge Frank Ottery held a preliminary hearing on December 19 and today's meeting was to hear from all involved parties regarding the swift disposition of all aspects of the bankruptcy filing.

The courtroom was filled with CART's lawyers, representatives and lawyers from OWRS, attorneys representing two race tracks: Road America in Elkhart Lake, WI and ISC for California Speedway in Fontana, CA. as well as several concerned parties.

Road America and California Speedway have a stake in the outcome of this bankruptcy filing as both have current issues against CART. The Road America venue was on the 2003 CART schedule, then off, then back on with a date that was not of their choosing feels that their ongoing discussions for a 2004 race date is in jeopardy.

International Speedway Corp. argues that California Speedway should not pay 2003 sanction fees after they postponed the season finale event due to the California wildfires and CART moved to cancel the race. Also in question is the 2004 race date for which CA Speedway is contracted but has canceled on their schedule.

Due to teams/owners/drivers/promoters/tracks needing time to prepare for 2004, OWRS attorneys stated that the final date to allow the Champ Car World Series and the Toyota Atlantic Series to commence a 2004 schedule is February 13, 2004 and even that would be stretching it.

January 28, 2004 has been set as the date that Judge Ottery will give his decision - a day of possible fireworks.

With the racing season only months away, the question to many fans is whether there will be a season opener in April at Long Beach or if that event will go the way of the original season opener. The St. Petersburg Grand Prix has already been postponed.

Remaining questions to the transaction will have to wait until the court's decision, including what happens to the CART stockholders, whether the issues with tracks and promoters can be resolved and, of the 2004 tentative schedule released by CART stand up, what events will happen, what venues may be added and which will fade away.

One of the vital questions in this entire ongoing CART dilemma is: Will Champ Car continue to exist? Will the new ownership be able to perform magic and pull that rabbit out of the hat?

[Flatspot]

Originally posted by GTRMagic
Is the pocket big enough to do that? Mr K of PK motorsport fame mentioned several times thru 2003 that his ChampCar team was hideously expensive...

Almost answers itself don't you think. If Kalkhoven were so concerned about the cost of his team alone and his pockets were hurting, he certainly would not be foolish enough to put himself in the middle of the OWRS partnership, would he? Relative to the pocketbook, I know that anything I do which is hideously fun is also hideously expensive...or fattening.

Dov, I think that you hit square on the biggest issue - sponsors. The longer things drag on the tougher things are going to be, that's for sure. TV ratings in the 1.2-1.4 range aren't helping things either.

Reality, however, will tell you that to get from a filing, to hearing, to ruling stage in an American bankruptcy court in something shy of 2 months is a miracle in and of its own. It appears that there is a good team in place right now to try and pull this thing off.

[GTRMagic]

I agree on the money side, but Mr Pook was playing with the best kind of cash available... other people's...

If the teams are struggling to secure or maintain sponsors because of all this uncertainty, the organisers will likely be forced to dip their hand in their pockets to get more cars out there.

At US$5m a pop for a midfield team, it can get quite expensive....

[paul-collins]

Also, remember that January 15 was set as the drop dead date by Dover for LBGP. I wonder how that fits into this?

[Snrub]

I was thinking the same thing as paul-collins, why has the Long Beach deadline not been mentioned?

As Dov was saying this is not going to result in a rosy outcome. The later it goes the less likely it is that sponsors will be willing to sign up. I would think the best worst case scenerio for sponsors would have been october.

[The Snout]

Up to OWRS to start talking to the fans, teams etc and tell them the score. They would have constant communication with the teams that we aren't aware of at this point. Yeah, there's Long Beach to consider etc, it's up to OWRS to communicate with them and we'll see what happens.

Can clearly see why St.Pete's date was moved.

Rush1, 'poor form' as some would say , but welcome back.

[The Snout]

God damm. Just as things looked down I found this on other site


Apparently, the motorsport.com people did not stick around at the hearing for this very important bit of information:

http://www.miami.com/mld/miamiherald/sports/7601105.htm

INDIANAPOLIS - The CART racing series could win court approval of its proposed sale to a group of team owners by Jan. 28 under a plan a bankruptcy judge approved Tuesday.

U.S. District Judge Frank J. Otte's approval of CART's proposed sales procedures came two weeks after the series filed for Chapter 11 bankruptcy protection as part of an agreement with the series' buyers, Open Wheel Racing Series LLC.

Otte overruled objections to the sales procedures and scheduled Jan. 23 as the deadline for alternative bids for Indianapolis-based CART's assets. If any such bids emerge, they could be considered during an auction Jan. 28. Without any qualifying bids, Otte could approve the sale to Open Wheel that day.

"This is another step in the process that will hopefully move us toward a successful 2004 season," CART spokesman Eric Mauk said. "This is by no means the end of the road, but it does keep the process moving."


Looks like we're in fact on schedule. ....tick tock,tick tock...

[GTRMagic]

Originally posted by The Snout
Looks like we're in fact on schedule. ....tick tock,tick tock...

Thats not a timebomb I hear is it? Please dont think there will be no more hurdles, because it is likely there will be more.

The shareholders who lost a mint in sharemarket value thanks to his Pookness, the compulsory acquisition and now chapter 11 are yet to be heard.

[Fogelhund]

Both articles are correct really. The key point for now is as follows.

Otte overruled objections to the sales procedures and scheduled Jan. 23 as the deadline for alternative bids for Indianapolis-based CART's assets. If any such bids emerge, they could be considered during an auction Jan. 28. Without any qualifying bids, Otte could approve the sale to Open Wheel that day.

So, the objections to the sale have been overruled, which is positive.

The OWRS people have stated that they need to have this wrapped up by February 13, 2004. The only way that it doesn't happen, is if someone offers up an alternative bid before Jan. 23. Really, the odds of that happening are pretty slim.

So, circle Jan 23rd and Jan 28th on your calendar, if things go as they should, OWRS should be in the clear (legally) after that.

This certainly does not stop the CART co. and people from being sued, which IMHO, they should be, but that shouldn't in any way affect OWRS after the approval.

On the cautious side, lets still keep in perspective that this is a ship, no matter how the ownership is structured, that is has a serious money problem. The ownership issue is just one piece of the puzzle, and the foundation of this series will still need major work. This is a steep hill to climb, but at least things still are moving forward.

[The Snout]

Originally posted by GTRMagic
Thats not a timebomb I hear is it? Please dont think there will be no more hurdles, because it is likely there will be more.

The shareholders who lost a mint in sharemarket value thanks to his Pookness, the compulsory acquisition and now chapter 11 are yet to be heard.

Didn't mention there would be no more hurdles, there will be loops to jump though for a year or 2 yet if you look at the big picture. Eric said it best, "it does keep the process moving", that's all Champcar fans ask for right now.

[Fogelhund]

Originally posted by paul-collins
Also, remember that January 15 was set as the drop dead date by Dover for LBGP. I wonder how that fits into this?

I believe that the Dover Group are satisfied with the direction that OWRS is taking. January 15th, at least to me, seemed to be the date whereby the change to OWRS needed to be made at least in spirit. The Dover Group seems to be satisfied that has happened.

Having said that, it would also appear as though Dover has taken necessary steps to cover their butts, in case something does happen, as they have engaged in talks with others.

It would appear as though 2004 Long Beach is safe. I'm not really confident OWRS will be at Long Beach after the current contract runs out. OWRS has some steep hills to climb still, but I think at least the early races in 04' are going to happen.

[Dov]

Originally posted by Snout
Apparently, the motorsport.com people did not stick around at the hearing for this very important bit of information:

Not only did the motorsport.com journalist not stick around long enough, but he or she didn't even get the judge's last name right....they spelled it Ottery instead of the proper spelling Otte...

[jj2728]

Originally posted by Dov
People, I really want to be positive here, but WHAT ABOUT THE SPONSORS? It's mainly their money that runs any racing series and the longer this thing drags on, the fewer sponsors I see jumping on CART's bandwagon!?

that's the thing i was wondering about too...at this point, how many (if any) big name sponsors are going to take a look at investing their $$$ into a series which is having so much trouble....how long will they wait before deciding to invest in other forms of motorsport...i really don't think it bodes well...

[GTRMagic]

How many chassis can Dale Coyne put on the grid?

[Zinger]

That sure is a time bomb. What if ALMS, IRL or even ISC came in a made an offer on some of the Assets avaliable. Then there are some major stubling blokes for OWRS. Being past the drop dead date for LBGP you would think that a few dummy bids for TG could see the cancelation of LB and open it up for IRL in 2005.

[Brian W Keske]

According to someone who was at the proceedings, the attorney for ISC/Fontana indicated that he knew of at least one entity/person who will be bidding on the assets. He would not devulge the name per attorney/client privilage...mmmmmm

Also, a CART attorney confirmed that St. Pete is cancelled not postponed.

The Janurary date seems to only be the begining of the real diliberation. This person seemed to indicate that the issues raised are not as tidy as some may want to think.

The link of this 'report' is at another race site, and I found this person to be fairly understanding of the legal process. That being said, take it for what it is worth, I'm sure there will be more spin on both sides coming out in the next couple days. And we will probably know about as much as we do now; not much except time slipping away.

[indycool]

Agree, Brian......there is a lot more to be played out here and the poster who suggested "tick tock" has a point.

There are many things which haven't played themselves out, albeit that Mark C. has posted things are "proceeding exactly as planned."

I don't dispute Gentilozzi's previous comments that he can submit affidavits to the court for 18 cars at Long Beach. As with the "25 letters of intent," in August of 2002, I dispute whether it can be delivered and Long Beach may well toss its hat in the ring to find out.

And Dov, your sponsor concern is real. Kalkhoven's "matter of days" comment has found its way to 28 more days from now at a MINIMUM, NOT guaranteed at ONLY 28 more days in any way. There are plenty of roadblocks that can happen. Time will tell.

[GTRMagic]

Are we still sure Ford wants to be a player in all of this? I cant recall having heard a peep out of them just yet...