IRL still considering CART bid

[Dov]

From Indystar.com.... http://www.indystar.com/articles/8/113791-9458-110.html

IRL still considering CART bid

Associated Press
January 22, 2004

A group of car owners accused the Indy Racing League of fostering "mistrust and anger" in open-wheel racing with a possible bid for the assets of the bankrupt Championship Auto Racing Teams.

IRL still had not decided today whether it would try to acquire CART's equipment and sponsorship contracts. Friday is the bid deadline set by a federal bankruptcy judge.

"We've got a lot of people working," IRL spokesman Fred Nation said. "We had to work on multiple tracks since there's a very compressed period of time here."

CART, which filed for Chapter 11 bankruptcy protection last month, already has agreed to sell all its assets to Open Wheel Racing Series LLC for $1.6 million in cash. Because the proposed sale also calls for Open Wheel to assume some liabilities, including 2003 prize money owed to teams, the total purchase price would be about $3 million.

If there are no other bids, U.S. Bankruptcy Judge Frank J. Otte could approve the sale to Open Wheel on Wednesday; a bid by IRL or anyone else could force an auction of CART's assets that day.

IRL, an oval-racing series that broke away from the established CART series in 1996, began examining the CART equipment and contracts two weeks ago.

"The IRL's late-game involvement and its admission that it is not prepared to go road racing in 2004 has awakened years of mistrust and anger for the breach in open-wheel racing," said Paul Gentilozzi, owner of CART's Rocketsports Racing team and one of three principal partners of OWRS.

Gentilozzi said his group has letters of intent from teams representing at least 18 cars, a television package and a schedule of at least 15 races this season, starting with the Toyota Grand Prix of Long Beach on April 18.

"The series already has all the basic elements in place," he said. "We have a plan and we will do whatever it takes to restore the Champ Car Series to its rightful status as the best open-wheel series. We don't need or want those guys across town."

In October, Indianapolis-based CART announced it lost nearly $78 million in the year's first nine months, and it said it would have to halt operations if the takeover by Open Wheel was not completed.

"While we are aware of the interest shown by other parties, OWRS is committed to assuming all the liabilities associated with the bankruptcy," said Open Wheel partner Kevin Kalkhoven, co-owner of the PK Racing team. "The IRL wants to bury, OWRS wants to build. That's the difference."