Bankruptcy hearing extended to January 28th (merged)

[Dov]

From another forum.....

1. 88 Corp is connected to ISC and/or Fontana, they are listed as creditors in CART's bankruptcy petition.

2. There is a deadline for bids that must be submitted to Baker & Daniels (CART's attorneys)by the 23rd, so it would be hard to imagine Open Wheel not coming up with a higher bid on the spot.

3. The final auction will be held at the sales hearing, and will not finish untill each bidder has made their final bid. So, technically it could come down to a straight up shoot-out at hearing time. BUT the DEBTOR (CART) has the authority to determine what the best or highest offer is. Seems to me that CART has the upper hand to determine who it will sell to, according to the order entered by the Court.

4. The criteria CART has in accepting the bid, and The Court in approving it is contingent on the buyers ability to perform under the assumed contracts. In other words, CART could refuse an offer by ISC, arguing that ISC does not intend to honor the contracts and will not race at all the venues, and they merely want to buy out and destroy a competitor. I think that is the reason why ISC's attorneys were arguing that CART could get out of the majority of its race contracts for nothing - that devalues the value of these promoters contracts. And for those who think it is a conspiracy, notice how RA has argued that it can weasel out of the contract.

5. Of course, it will also depend on how well the creditors get paid - which should not be a problem due to the fact that CART still has $$$ to pay off expenses and shareholders.

[Flatspot]

It truly surprises me that the judge has given C^RT so much authority over what happens here with the disposition of its assets. I read 88 Corps. arguments and they are truly reasonable, whereas, some of the requests granted to C^RT, i.e. being the party responsible to decide if another bidder is suitable, seem unreasonable to me.

The only explanation that I can buy into is that the judge has wholly bought into the concept that if the sale is not complete in very short order there will be 0 value in the assets C^RT does have.

Originally posted by macdaddy
Let me tell ya... I can't wait until we've got other things to talk about! These legal discussions are well and good, but I can't contribute to them 'cause I don't know nothing!

And I would love to know how to bake... at least your giving it a go.

[Dov]

Don't worry, Macdaddy! I don't understand most of this legal mumbo jumbo either....just the VERY BASICS. Truth be told, I can't wait for this whole mess to be over with so we can start discussing what's happening on the track and nothing else!!!

[Testure]

Originally posted by indycool
As far as the court filings and list of assets OWRS proposes to buy, look here:

http://www.myehud.com/CARTBK/

Very interesting. According to the list of creditors Brian Herta is owed $75,000 for a claim settlement. Anyone know what that's about?

[Fogelhund]

Dov Point #4 is fairly speculative in nature. How exactly can CART argue what ISC will, or will not do, should they be successful. That would open them up huge for a lawsuit.

[indycool]

Herta's claim is over payments on the Stars of Tomorrow program that was settled in that amount sometime last summer.

Dov, ehud, a lawyer, posted over at CW that the judge's priorities are the creditors and shareholders and no one else, so fans and the racing series won't play a significant role in this.

The value of the contracts is going to be a major issue, as the points made in your item #4 above. Gentilozzi has also said he'll provide affidavits for 18 cars. Right now, he hasn't got 'em and that will most certainly be challenged. RA's lawyers are expected to be taking depositions to that effect prior to the 28th.

[Zinger]

And the Bridgestone contract listed on the sale list has just expired.

[GTRMagic]

The local Australian V8 Supercar series spent 10 months of 2003 talking about legal junk, and how some groups were allegedly skirting the rules, while the rulemakers fiddled as Rome burned....

I dont think you have seen the last of it yet

[Zinger]

This was posted in the Trans Am OWRS thread ..


appears to be some big problems at Trans Am.

I tried to go to their web site today, www.trans-amseries.com, and its gone. In its place is Creative Communications, which is a web page designer, that lists Gentilozzi and Trans Am as clients.


It was reported by muggle not, that Trans Am hasn't paid the bill for their web site, and none of the Trans Am entrants in Puerto Rico were paid there travel expenses or their prize money.

Again, not a good sign for Gentilozzi...

This could have some effect on the OWRS CART by out. OWRS are claiming topay unpaid team prize monies but PG has not coughed up the doe in the Trans Am series. It may see RA lawyers depose the trans Am competitors to see if OWRS has the ability to honour contracts.

[Dov]

Originally posted by Indycool
Dov, ehud, a lawyer, posted over at CW that the judge's priorities are the creditors and shareholders and no one else, so fans and the racing series won't play a significant role in this.

Thanks, but I've already read it. In fact it was the same thread (next page) that I got (copied) my 5 point post from....some guy named Boli-Nica. Just highlighted what I thought were the important points...

[Dov]

Originally posted by Fogelhund
Dov Point #4 is fairly speculative in nature. How exactly can CART argue what ISC will, or will not do, should they be successful. That would open them up huge for a lawsuit.

Ask the Judge.....I'm just the messenger......

[Fogelhund]

Someone wan't to PM me a link to the CW forums?

THX

[paul-collins]

http://cartfanatics.com/forums/

[GTRMagic]

Any fat ladies spotted in the distance flexing their vocal cords?

[Dov]

Originally posted by Fogelhund
Someone wan't to PM me a link to the CW forums?

THX

Hi Fogelhund, this is the link to the thread that Indycool and I were talking about....it's called "mention of the counter offer"......http://cartfanatics.com/forums/showt...threadid=12978

Cheers,
Dov

[Dov]

Originally posted by GTRMagic
Any fat ladies spotted in the distance flexing their vocal cords?

What's got you so down, GTR? Can't you smell the methanol!? Can't you hear those turbo engines!? ChampCars WILL be racing in '04!!!

[Dov]

From Champweb.net:

Court Approves Procedures for CART Asset Sale posted on 01-03 20:22

LANSING, Mich. (Jan 3, 2004) – U.S. Bankruptcy Judge Frank J. Otte made several definitive decisions Tuesday, Dec. 30, as he approved the procedure submitted by CART, Inc. to sell its assets and accepted the Open Wheel Racing Series, LLC (“Open Wheel”) proposal to purchase said assets as a “qualified bid.” The proceeding was held in Indianapolis in the Birch Bayh Federal Building and Courthouse. No other buyers have indicated an interest in the CART assets to date.

The court also established a timeline to complete the proceedings. Any other parties interested in submitting competing bids must do so no later than Jan. 23, and the court will render a final decision with regard to the Open Wheel proposal on Jan. 28.

“We’re very pleased and encouraged with the proceedings,” said Attorney James Moloy, who represented Open Wheel at the hearing. “The bankruptcy judge quickly recognized the importance of an expedited sales process in order to ensure the 2004 Champ Car World Series season.

“The court’s ruling was expected and approved the precise relief requested by both CART and Open Wheel,” added Moloy.

“We continue to have complete confidence in our work and vision for the Champ Car World Series,” explained Paul Gentilozzi, an Open Wheel partner and owner of Rocketsports Racing. “As the closing of the transaction progresses, Open Wheel will continue the planning process of the operational details required to conduct the 2004 Champ Car World Series.

“Our stakeholders and fans continually tell us what a phenomenal product we have in the Champ Car World Series,” continued Gentilozzi. “We completely agree, and we’re resolute in our intent to return the Series to its rightful place in the international motorsports arena.”

Kevin Kalkhoven, an Open Wheel partner and co-owner of PK Racing, welcomed the decision.

“This is another important step toward ensuring the future of Champ Car,” he said. “We remain committed to our goal for an expedient resolution so that our sponsors, teams, promoters, and fans can be assured of yet another exciting season of Champ Car racing. It’s what they deserve and we intend to deliver.”

The 2004 Champ Car World Series racing season is slated to begin April 18 with its 22nd running of the Toyota Grand Prix of Long Beach. Reigning Champ Car Drivers’ Champion Paul Tracy will return to defend his 2003 Long Beach win.

Didn't 88Corp/ISC make a bid for CART's assets!?

[macdaddy]

GTR... I hear nothing.
I'm listening, but I hear no fat lady.
Perhaps I do hear something, but it's hard to make out over the whining noise of a distant turbo.
And until that turbo is shut down, I don't think I'll be able to hear that fat lady!

[Snrub]

Originally posted by Testure
Very interesting. According to the list of creditors Brian Herta is owed $75,000 for a claim settlement. Anyone know what that's about?

Very interesting link, thank you for posting it.

It strikes me as odd that there are only certain teams listed there as being owed money. We know other teams eg. ASTJ, Coyne, etc. should theoretically be owed prize money. Why only the listed teams?

The REALLY cool thing is now we have contact info for some of the heavy hitters in CART. Wouldn't it be amazing to set up a Ten-Tenths conference call with Mario Andretti?!? Granted I'm sure these people would not pick up the phone if you were to call one of these numbers, but I wouldn't be surprised if one wasn't eventually able to get in contact with one of them. Anyone have the courage to call and try and get one of these people?

[MLM]

Originally posted by Dov
Don't worry, Macdaddy! I don't understand most of this legal mumbo jumbo either....just the VERY BASICS. Truth be told, I can't wait for this whole mess to be over with so we can start discussing what's happening on the track and nothing else!!!

Tell me about it! :confused:
I start to read and sift through all the legal/business mumbo-jumbo but my eyes start glazing over about a 1/3 of a way through! :confused: I'll be glad when everything is sorted out...and sucessfully, too (knock on wood! )

[Dov]

Originally posted by MLM
I'll be glad when everything is sorted out...and sucessfully, too (knock on wood! )

"Knock on wood!"....that must be the sound of Judge Otte's gavel awarding CART's assets to OWRS!

[rush1]

Originally posted by Snrub
Very interesting link, thank you for posting it.

It strikes me as odd that there are only certain teams listed there as being owed money. We know other teams eg. ASTJ, Coyne, etc. should theoretically be owed prize money. Why only the listed teams?

The REALLY cool thing is now we have contact info for some of the heavy hitters in CART. Wouldn't it be amazing to set up a Ten-Tenths conference call with Mario Andretti?!? Granted I'm sure these people would not pick up the phone if you were to call one of these numbers, but I wouldn't be surprised if one wasn't eventually able to get in contact with one of them. Anyone have the courage to call and try and get one of these people?

I do agree it would be fun to talk to Mario and maybe some of the other team principals that bankrupted CART in 2003. Ask Mario why Derrick Walker and Carl Haas received $10.5 million from CART's rapidly dwindling cash reserves. It must of been from their stellar work on the board. Maybe ask him why Gerald Forsythe, Paul Gentilozzi and Kirk Kalhoven received $7 million from CART in 2003. http://www.indystar.com/articles/7/100422-2347-036.html

Add the $42,000 dollars per car per race and these boys pocketed some serious cash. And they still owe Forsythe over a million dollars in purse winnings! I find it somewhat ironic that many of you find Tony George the boogeyman when these boys split up the cash among themselves instead of giving it to CART shareholders.

Kenneth Lay would be proud.

[The Snout]

Originally posted by rush1
Maybe ask him why Gerald Forsythe, Paul Gentilozzi and Kirk Kalhoven received $7 million from CART in 2003.

Kirk Kalhoven. Wasn't he that teenager in that tv show 'Growing Pains' during the 80s ?

[The Snout]

Originally posted by Snrub

The REALLY cool thing is now we have contact info for some of the heavy hitters in CART. Wouldn't it be amazing to set up a Ten-Tenths conference call with Mario Andretti?!? Granted I'm sure these people would not pick up the phone if you were to call one of these numbers, but I wouldn't be surprised if one wasn't eventually able to get in contact with one of them. Anyone have the courage to call and try and get one of these people?

Considering this is an on going court case I doubt they would want to talk about any of the facts related to it.

[Emfa]

Originally posted by Dov
...
Didn't 88Corp/ISC make a bid for CART's assets!?

Not yet, but there seems to be some indication that they will...

Originally posted by Fogelhund earlier in this thread
http://www.grandprix.com/ns/ns12313.html
...
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.
...
(Italics added)