Bankruptcy hearing extended to January 28th (merged)

[GP Racer]

Pook spent some 80-100 million dollars to run the 2003 season, and he had sponsorship, and investor money. Now, with this thing dragging its way slowly through the courts, would be sponsors are bound to walk away.

So where will the money come from to run this season? I for one doubt that OWRS is going to pony up that kind of money, simply because there's no return, no pay-off. It just looks like a bad investment, with no way to cut a profit.

I really wouldn't be surprised, if on the 23rd. of Jan., there is a surprise bidder at the sale of assets, and there will be a joint announcment between himself and OWRS.
Or, on the 28th, OWRS backs out of the deal completely.

Does anybody here think that OWRS can put up the kind of money its going to take to run this series on there own? I've certainly lost my trust and faith in PG, after seeing him destroy the Trans Am series.

[Dov]

I know that KK is a billionaire and GF isn't doing to badly himself, but will they use any or enough of their own money to keep the CCWS running for a couple of years until it becomes stable.....who knows!?

[indycool]

GP, that's where this OWRS deal makes no sense. Liz and Dov will be all over me on this one, but these guys haven't spent anything yet except for lawyers and accountants. Their projected budget for '04 shows $66 million in revenues and $88 million in expenses. We know where at least $88 million in expenses comes from and considering last year's Pookfare, it's low. We don't know where the $66 million in income comes from. It certainly isn't going to come from Spike TV.

I don't think a second bidder by Jan. 23 will be much of a surprise. Mike Hile, an attorney representing 88 Corp and California Speedway, said in court that he represents a group which intends to bid. The OWRS proposal is so low that the equipment itself would be a bargain.

[GP Racer]

I have been suspicious of this deal, almost from the beginning.

Personally, I believe that PG and company have wanted to get this thing at a bargain basement price, make it look attractive, and then sell it at a profit to one guy(I won't mention his name!)I don't want to get into the one series thing again, but all the players at OWRS have stated its the only way to go, financially speaking.

There are companies that specialize in take-overs and buy-outs. They buy low, make it attractive, and then sell-out. PG has no history with Champ Cars, and it wouldn't surprise me abit if thats his motive here. Like I said, my trust in him is gone, since he ruined the TA series.

All this is only IMHO! Don't beat me up!

[Fogelhund]

http://www.grandprix.com/ns/ns12313.html

George and the Frances moving on CART?
An Indiana judge has cleared away the first hurdles in the planned takeover of CART assets. Judge Frank Otte overruled attempts to slow down the process and thus torpedo the plans of Open Wheel Racing.

The CART lawyers argued that if there were delays there would be nothing left. The objections had been put forward by legal teams representing California Speedway and Road America, both of which have outstanding legal issues with CART.

Mike Hile, an attorney representing California Speedway said that he is also representing a group of investors which is interested in making a bid for the CART assets. The identity of this group remains unknown although Hile said the bid would come from a company called 88 Corp.

88 Corp is the owner of California Speedway and a wholly-owned subsidiary of the International Speedway Corporation. This is a leading promoter of motorsports activities in the United States, currently promoting more than 100 events annually. The Company owns and/or operates 12 motorsports facilities, including Daytona International Speedway in Florida; Talladega Superspeedway; Michigan International Speedway; Richmond International Raceway; California Speedway; Kansas Speedway; Phoenix International Raceway; Homestead-Miami Speedway; North Carolina Speedway in Rockingham; Darlington Raceway in South Carolina; Watkins Glen International in New York; and Nazareth Speedway in Pennsylvania. It also owns an interest in Chicagoland Speedway and Route 66 Raceway near Chicago. In addition it owns and operates MRN Radio, the nation's largest independent sports radio network and the Daytona USA theme park in Daytona Beach, Florida. The company also owns major merchandising subsidiaries.

ISC is a publicly-traded company but is controlled by the France Family, the owners of NASCAR. It is also involved in another company called The Motorsport Alliance, a partnership between ISC, the Frances and Tony George, the owner of Indianapolis Motor Speedway and the Indy Racing League, CART's major rival.

This is a decided turn for the bad, as it could easily delay things quite a bit

[indycool]

Agreed, Fogel, it could delay things a great deal. Hile specifically stated in court he represented someone interested in making a bid. If that happens, the bid plays more toward OWRS getting tangled up. I doubt OWRS will be much more of a player than it is now, i.e., not more than a few more bucks.

[GP Racer]

WOW! What a blockbuster!

We may really be a step away from one open wheel series!

Am I reading too much into that, or is that correct? I'm kind of speechless at the moment...

[rush1]

Originally posted by Dov
I know that KK is a billionaire and GF isn't doing to badly himself, but will they use any or enough of their own money to keep the CCWS running for a couple of years until it becomes stable.....who knows!?

Where do you get Kevin Kalkhoven is a billionaire? Was he listed on some fortune 500 list? Its important because, If he really is a billionaire, and is willing to spend $50 to $100 million on this venture than or cource it could happen. If he is worth a couple hundred million than its a little different. But I have not heard any numbers bandied about by these guys, only that they will not subsidize the series as last year.

If you are worried about sponsors than name the sponsors lined up for next year.

Ford, Bridgestone, Mexican beer (?), For Newman Haas Pacific Care, Lilly, Mcdonalds (?) who else, Mijack? I'm sure there are more but I didn't watch much CART last year.

[indycool]

GP, I believe you're reading it right, or at least what I'm reading is the possibility of a "forced merger" or "de facto merger." If CART/OWRS loses the deal, then the IRL is the only open-wheel series. I'd guess that only a few CART cars would be making the transition to the IRL, though.

[Flatspot]

Help me here, I don't see it. First, where is the delay? The date is set to receive alternate bids for the assets OWRS has agreed to buy not to reopen arguments on whether the sale should be allowed. All that is up in the air is the price for those assets.

Is it not true that as a part of the asset base is the obligation to stage certain events? Is this 88 Corp. willing and able to do so? If a "forced merger" does take place what benefit is it to the other side? No one over there is ready to take on the obligations of purchasing C^RT.

I see 88 Corps. bid being similar to a bid by the beneficiary bank in a foreclosure. You bid in your debt (in the case of California Speedway your sanction fee and claimed damages) and see what happens because if you fail to do so you may lose your claim under bankruptcy law.

IMHO, to classify these comments as some kind of grand conspiricy to remerge open wheel racing by force is far over-reaching.

[Brian W Keske]

If you don't see that the end of Jan to start the gaming between all the parties as a delay, than I don't know what to tell you.

The end of Jan may only be the *begining* of the fight. First all the cards had to be laid on the table in order to make objections, that happened yesterday. OWRS cannot do much with their asset purchase until these issues are finalized (agreed to by the court).

If this things starts going into Feb/March without a clear break from the bankrupcy proceedings I can only see major defections taking place. An I would think there will be some within the next month.

The timing of this is not what PG nor KK wanted, but they will try and spin it as a positive anyway. Believe who you will.

[GP Racer]

It's pretty incredible, if you think about it, that we can be this close to one series again, after all this time. But the timing seems to be right and as PG himself said, "there will never be a better time than now to make it happen".

Geez, Its going to take awhile to digest all of the possibilities. Wow!

[Liz]

Mr. Keske, you just keep praying that CCWS will destroy itself, if it makes you happy; just remember that the legal profession isn't controlled, yet, by your friends in Indianapolis. Personally, having been involved in the workings of the legal profession for the past 18 years, I am not going to hand out either dancing slippers or crying towels just yet.

I am waiting and praying that your hopes will be denied.

Happy New Year.

[Dov]

http://autoweek.com/cat_content.mv?p..._code=08843791

[Jay]

GP Racer - no, there will not be one series. You'll still have a lot of other racing series for your IRL to compete with - namely Nascar.

As for one series, I'll have none (as far as top-level open-wheel road racing goes).

That said, I'm still confident that whatever delays there may be, the people involved in OWRS will begin the process of rebuilding the Champcar series when the courts will allow. 2004 may be seriously delayed - there might not even be a 2004 season! But, top-level open-wheel road racing as we've come to know in North America will continue.

[Flatspot]

The judge has already ruled that the sale can go through either to OWRS or to another bidder if one surfaces by Jan. 23. If another does surface then there will be a formal auction on the 28th. No delay as far as OWRS and the asset purchase and getting on with the 2004 season is concerned. If another suitor steps up they will have to complete their purchase on Jan. 28 just like OWRS would. Again no dely as the court has already ruled. The only question then becomes price.

This should not be confused with the balance of the bankruptcy proceeding and the disposition of the money raised from the sale of the assets, the dicharge of C^RT's liabilities and the winding up of the business affairs of C^RT, which could take a very long time. They are completely separate issues and OWRS is not involved in that aspect of C^RT's business.

[GP Racer]

Originally posted by Jay
GP Racer - no, there will not be one series. You'll still have a lot of other racing series for your IRL to compete with - namely Nascar.

As for one series, I'll have none (as far as top-level open-wheel road racing goes).

That said, I'm still confident that whatever delays there may be, the people involved in OWRS will begin the process of rebuilding the Champcar series when the courts will allow. 2004 may be seriously delayed - there might not even be a 2004 season! But, top-level open-wheel road racing as we've come to know in North America will continue.

I think most of us that envision one series, believe it would have oval, street, and road courses included. The one series, if it be the IRL, would not stay with strictly ovals, therefore competing with NASCAR is a moot point.

Where will you go for open wheel racing if it goes one series? Are you going to quit on it, just because you dis-like the owner? Seems alittle short-sighted to me. Wouldn't you at least want to give it a chance, before you make up your mind? I don't think anyone should paint themselves in a corner at this point.

It could wind up being the series we all want, plenty of GOOD cars, teams and sponsors. REAL TV coverage, with real ratings, and a FAT schedule, to rival, yes, NASCAR.

I'm not as big a fan of the IRL as you think, but I can see who's holding the cards right now, and who has the best shot at bringing on a stable future for open wheel racing, and its not PG. As a matter of fact, I'm trusting his word in this mess less and less every day!

It's going to interesting!

[Brian W Keske]

Originally posted by Liz
Mr. Keske, you just keep praying that CCWS will destroy itself, if it makes you happy; just remember that the legal profession isn't controlled, yet, by your friends in Indianapolis. Personally, having been involved in the workings of the legal profession for the past 18 years, I am not going to hand out either dancing slippers or crying towels just yet.ie

I am waiting and praying that your hopes will be denied.

Happy New Year.

I don't have any friends in Indianapolis, and have not been back to Indy since 1993.

You know what they say about assumptions...right?

Happy new year to you too

I'll be looking to go to as many IMSA races as possible next year, but Indy ain't on the sched.

[indycool]

Flatspot, another bidder COULD delay the disposition. The auction will follow all kinds of briefs and motions and will also be conducted through briefs and motions. The judge isn't just going to sit there and act like an tobacco auctioneer. The 28th isn't a drop dead date. In fact, OWRS has set Feb. 13 as its own drop dead date.

And in reading Dov's Autoweek post, Autoweek lists 13 cars as solid and that includes an extra car each for Kalkhoven and Gentilozzi. Indeed, Gentilozzi said he "hopes to" run a second car. In its filings with the court, RA will take depositions from OWRS principals and probably CART car owners on the car count issue. The delay till Jan. 28 makes it pretty dicey for teams to seek alternatives if it goes haywire.

[Flatspot]

I agree that another bidder COULD delay but beleive the chances are slim to none given the way the judge has behaved on this matter so far. As stated above, another bidder would not reopen the process of the sale but rather the judge may need additional time to decipher the bid and decide which is best for C^RT's creditors. If a bid is placed before the court which is no more than an attempt to delay the sale and force OWRS not to run its season that should be easy to see and the court will summarily reject it. If the new bid is truly a good faith buyout the court may have something to think about. The court will have 5 days from Jan 23-28 to sort this out before the auction so again I don't see a big delay.

As GPR points out, it will be interesting.

Happy New Year to all!!!

[gttouring]

well if CART dies- long live Champcars!- a forced merger won't be the worst thing, the cart scehdule of 15 dates now can be shuffled to compliment the IRL schedule of 16 dates, and we'd have one helluva a 31 date calender- it could be re worked, but a big gun is the only thing that can take on the NASCAR cavalry, Dov cast the spectre of doom on my seeing the possible merger of the 2 happening, the Indy Champcar World series (to compliment thee Indy InfintyCar Proseries/ and Atlantic series')
and maybe it may happen- if one open wheel series is left it will be like the CART we knew with Ganassi-Penske-Andretti/Green-Unser-Forsythe-NewmanHaas. it will rise from the ashes to a new wondercar era. We can only support the survivor because the NextelCup is the real problem to Open wheel.

[Zinger]

The question would be could the teams afford a 31 race calender. And what if Ford made a bid to buy back the engines or even Honda put a bid in to get holdof the technology in them ???

[macdaddy]

I still find it hard to believe that the CART/Ford contracts include outright ownership of the engines and their technology.

[The Snout]

So, 88 Corp (ISC) comes in and buys out the assets of CART.

ISC then allows it's Champcar series to run at it's current venues as well as any ISC ovals that it wants.

ISC lets the contracts with the IRL run out and doesn't renew, leaving Tony George with Indianpolis and Texas x 2 and any other non-ISC ovals. This could effectively kill the IRL.

ISC through NASCAR pull the Brickyard 400 out of Indy and also cuts a deal with Bernie to run a joint Champcar/F1 weekend at Long Beach. Bernie accepts this because of the decline in F1 at Indy and doesn't renew with Tony George.

IMS is now left with at best the Indy 500 which with the decline and perhaps disappearence of the IRL hasn't got any cars to run there, leaving IMS with effectively no races and no revenue.

ISC (who have previously offered to buy IMS before) now re-offer to buy IMS.

IMS without any income or races sells to ISC and ISC/NASCAR brings back the Brickyard 400 and Indy 500, the 500 now a part of the ISC Champcar World Series. Probably renamed the ISC Indycar World Series. (hell we'd just need PPG back again)

ISC now has total control of openwheel racing in North America, has a you scratch my back I'll scratch yours relationship with Bernie, AND has both the jewels in it's crown, Daytona and Indy.

Just a possible buyout reason scenario why 88 corp my want to buy the CART assets.

So 88 corp, rotten egg or ultimate liberator ?

[Snrub]

I don't see how Honda would find any use in Cosworth's engines. Essentially it's the same engine they ran in 2002. With the variations in boost and RPMs over the last while there would be a number of different compressors, turbines and camshafts with different lobes that were used and that would probably be the only difference with the current cosworth. (more boost and peaking earlier)

I completely agree with those who've expressed doubt about all OWRS has promised. They essentially promised to do what Pook did last year and spend little money. While KK may not be a billionare, he is quiet wealthy. I thought Forsythe IS a billionare.

I sort of doubt ISC is interested in actually buying CART, but maybe they are trying to hurt CART. It stikes me as odd that ISC won't let CART race on its tracks and you have to wonder why they wouldn't want a large event at a track. This could turn out to be OWRS' fatal mistake in their attempt to save a few million. If CART doesn't run in 2004, it will be a lot less valuable in 2005 and sponsorship will be scarce.