Deal Approved?

[Tim Northcutt]

Sorry...I left two very important word sout of that last post:

Insert "DO NOT" right before the word "sue"....

Good Lord!!!


The last thing we need is a bunch of civil actions tying this thing up forever...

[paul-collins]

Originally posted by MolsonBoy
“Therefore, as a show of strength and good faith, Open Wheel has accepted the liability of almost $2.7 million in 2003 prize monies which we will pay to our teams that elect to participate in the 2004 Champ Car season,” revealed Gentilozzi.

I'm guessing that winning teams were going to end up as creditors in the bankruptcy proceedings - ie that if OW didn't accept this, the teams would get diddly?

Who might this be aimed at, besides ASTJ? NH?

[racefanatic]

This is so exciting! The rest of the off-season won't be so stressful now, hopefully! I'm so happy right now!!!

[Fogelhund]

Originally posted by paul-collins
Who might this be aimed at, besides ASTJ? NH?

You can guarantee that those not teams, people who are owed prize money, that will not be participating in 2004, will be debating whether to lauch a suit to block the sale, which would in essence see them get nothing.

[Flatspot]

Originally posted by paul-collins
Who might this be aimed at, besides ASTJ? NH?

I've got to believe it includes everyone who won prizemoney toward the end of the season. This would include the owners of OWRS themselves so the actual cash outlay by the partners should be substantially less than the published number. Looks great on paper but is far less painful than they make it out to be.

This is all very good news as far as I am concerned. The assets being purchased are of virtually no use to anyone else so I can't imagine the bankruptcy court standing in the way. In fact they will probably encourage the sale.

...and the beat goes on.

[indycool]

Good question, Paul. The OWRS and CART releases differ on this. You posted the OWRS one. CART's says $1.5 million of the $3 million purchase price will go to teams. I think it's for point money, not purses and I don't know which is correct. There's a $1.2 million difference.

I think it would aimed at N-H and Patrick and whatever the amount, they might parcel it out piecemeal over the season as a "race participation incentive" to get what was owed them in the first place. Doubt that it'd help ASTJ, Fittipaldi-Dingman, Bachelart or Coyne enough to matter.

[Flatspot]

From the C^RT Press Release
The total consideration that will be paid if the agreement is completed is $3.0 million less $1.5 million in 2003 prize money to teams who are not affiliated with OWRS; which is an obligation of CART being assumed by OWRS.

Based on my assumption above could the $1.2MM difference be the amount owed to Forsythe, Rocketsports and P-K Racing?

[Mags]

gi_gav, go to Laguna. It's THE best track there is!!

[indycool]

Flatspot, could be.....like the car count issue that killed the original proposal: With OWRS cars, they had enough; without them, they didn't.

[jusafan]

Awesome. I can't wait. I want to see AJ Allmendinger become the new American open wheel star. And PT will be there again too. Love it!

[rustyfan]

Good to finally hear something solid

[The Snout]

AJ had some pretty fine things to say about it, he wants to be in Champcar, no 2 ways.

[f1manoz]

*starts handing out humble pie*

Who said CART/OWRS was dead?

It.... is.... ALLLLLIVVVEEEEE!!!!

[The Snout]

MISSING PERSONS REPORT

FAT LADY, last scene near CART HQ in Indianapolis carrying a microphone on approximately December 15th 2003.

Desperately missed by loved ones, reward offered for information to whereabouts, see Rush1 for details.

[Tailwind]

Good post Snout!

[Jay]

Last seen at Nascar race...oh wait, that's no help.

[Fogelhund]

Personally I think Snout's post is in bad form. I suppose the viewpoint would be a little different if CART had fallen apart, and a similarly sarcastic in your face post was made by Rush.

Let's just be glad that this is finally headed in the right direction, despite the numerous hurdles in front of us. No need to escalate hard feelings.

[Liz]

Wasn't there a "Fat Lady" thread earlier in the month? And did you protest about that one?

We are all in good humour and we need the uplift. Let us enjoy ourselves for a little while.

[Flatspot]

OK folks, help me here please. In Chapter 11 a company can reorganize and move forward by eliminating the portions of its business that are not profitable and retaining those that are, hopefully, emerging as a viable entity. That I understand.

What I don't know is, will the bankruptcy law allow the buyer of specific assets to take a public company private or does this still need to be approved by the shareholders under security law? In the alternative, is it the intent of OWRS to restructure and operate a public company? The press releases don't seem to address this and I still haven't seen anything official saying the vote is off (although I haven't searched for it).

[Flatspot]

Never mind answered my own questions. OWRS buys the assets and C^RT winds up it affairs and goes away. OWRS is then the new private company yada yada yada.

[The Snout]

Originally posted by Tailwind


Good post Snout!