Champ vs IRL dispute - Judge rules
01-28-2004, 01:14 PM
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Champ vs IRL dispute - Judge rules
It was just announced moments ago, Tony George lost his in his bid! FTG!
01-28-2004, 03:49 PM
#2
Thread Starter
the rest of the story
Open Wheel Racing Series now owns the Championship Auto Racing Teams, Inc. assets
Date 2004-01-28
By Motorsport.com staff writers
Open Wheel Racing Series, LLC now owns the Championship Auto Racing Teams, Inc. assets, including the liabilities. Judge Frank Otte's ruling came after a long day of bidding by both OWRS and the Indy Racing League at the Birch Bayh Federal Building and Courthouse in Indianapolis, Indiana.
The trials and tribulations of CART started long before the OWRS' partners, Paul Gentilozzi, Kevin Kalkhoven and Gerald Forsythe started to buy CART stock. At that time, CART stock was low and was trading on the New York Stock Exchange. The three made their idea known to promoters, track owners and team owners prior to reaching an agreement of merger with CART on September 10, 2003.
Things went sour until a new agreement was reached by OWRS and CART on December 15,2003 when OWRS announced that they would buy the CART assets and liabilities pending on CART filing Chapter 11 bankruptcy and finalized on the court's approval.
The horizon for Champ Car racing to continue appeared to be secured on December 30, 2003 when CART's Chapter 11 was heard by Judge Otte who scheduled January 28, 2004 as the day he would give his final decision.
However, Tony George's Indy Racing League tendered a bit to purchase some of CART's assets on January 22, 2004.
Today started with an ruling by Otte to allow the IRL bid which started the ongoing negotiations today at the courthouse. Both parties for the IRL and OWRS were sent to separate rooms to decide on their bids.
The IRL started the day with their original bid of $3.2 million, whereas OWRS' bid started at $1.6 million. OWRS came back to the judge with a matched bid.
The main difference was that OWRS' bid was to cover the liabilities, IRL's did not.
IRL returned with a higher bid that now included the liabilities to $13.5 million, in what appeared to be an obvious move to have only one premier open wheel series in North America.
Judge Otte rejected the bid late this afternoon and awarded the assets of CART to the OWRS to allow the Champ Cars to race this year. The first event is scheduled April 18 at Long Beach, California.
Stories from earlier in the day:
January 28, 2004 - Today was marked on many calendars as a "day of fireworks" as Judge Frank Otte, the presiding judge for the Chapter 11 filed by Championship Auto Racing Teams, Inc., will announce a final decision and oversee the transition of the CART assets.
At the Birch Bayh Federal Building and Courthouse in Indianapolis, those present for the ruling include CART's CEO Chris Pook, Indianapolis Racing League's founder and owner, Tony George and the Open Wheel Racing Series' partners, Paul Gentilozzi and Kevin Kalkhoven. Gerald Forsythe was notably missing, allowing his two OWRS partners to handle the issue with their attorneys and their announced CEO Richard P. Eidswick who was appointed in December to oversee the Bankruptcy filing and any transition.
In the audience were CART's John Lopes and former CEO Joe Heitzler, who represents the two Mexico races. Champ Car driver/team owner Adrian Fernandez, whose IRL team is currently at the Open Test in Homestead is also in attendance. Fernandez has an interest in both North America's premier open wheel series.
On hand were also Dale Coyne, Emerson Fittipaldi and representatives from many of the current Champ Car tracks, including California Speedway and Road America, both of whom have ongoing legal disagreements with CART after the 2003 season.
OWRS and CART reached a merger agreement on September 10, 2003. Due to a variety of issues, that agreement was rescinded and a new agreement was reached whereby OWRS would purchase certain assets of CART once the Chapter 11 was filed.
However, on January 13 of this year, 14 days after CART's initial appearance in court on December 30 of last year, the IRL also submitted a bid to buy certain CART assets, thus adding to the mix. OWRS countered that the IRL bid was too late to be considered.
Today, the fireworks started early as judge Otte disallowed OWRS request and granted IRL the right to bid. Now the auction of CART's assets begins.
The bidding for the CART assests began in earnest at the Birch Bayh Federal Building and Courthouse in Indianapolis, Indiana after the court recess once Judge Frank Otte ruled that the Championship Auto Racing Teams, Inc. Chapter 11 Bankruptcy will proceed.
Otte allowed the Indy Racing League request to bid for the CART assets, as well as the already approved Open Wheel Racing Series.
The IRL and OWRS representatives and attorneys have convened in separate rooms to make final bids after over one hour of analysis on the asset items in the courtroom.
Early rumours were verified that the IRL would bid on the current Champ Car Cosworth engines, that bid has been withdrawn. However, the IRL bid of over three million dollars still exist as they hope to take over some of the CART contracts, most notably current race tracks including the Long Beach Grand Prix event.
OWRS initial bid was near the two million dollar mark, mainly to hold existing contracts that CART holds plus to pay off all liabilities, they have since increased the amount of their original bid.
According to sources at the courthouse, the presiding judge is very firm in resolving the issue today, "We're going to decide it and we're going to decide it today," Otte stated.
THE HISTORY
INDIANAPOLIS (January 25, 2004)
Open Wheel Racing Series now owns the Championship Auto Racing Teams, Inc. assets
Date 2004-01-28
By Motorsport.com staff writers
Open Wheel Racing Series, LLC now owns the Championship Auto Racing Teams, Inc. assets, including the liabilities. Judge Frank Otte's ruling came after a long day of bidding by both OWRS and the Indy Racing League at the Birch Bayh Federal Building and Courthouse in Indianapolis, Indiana.
The trials and tribulations of CART started long before the OWRS' partners, Paul Gentilozzi, Kevin Kalkhoven and Gerald Forsythe started to buy CART stock. At that time, CART stock was low and was trading on the New York Stock Exchange. The three made their idea known to promoters, track owners and team owners prior to reaching an agreement of merger with CART on September 10, 2003.
Things went sour until a new agreement was reached by OWRS and CART on December 15,2003 when OWRS announced that they would buy the CART assets and liabilities pending on CART filing Chapter 11 bankruptcy and finalized on the court's approval.
The horizon for Champ Car racing to continue appeared to be secured on December 30, 2003 when CART's Chapter 11 was heard by Judge Otte who scheduled January 28, 2004 as the day he would give his final decision.
However, Tony George's Indy Racing League tendered a bit to purchase some of CART's assets on January 22, 2004.
Today started with an ruling by Otte to allow the IRL bid which started the ongoing negotiations today at the courthouse. Both parties for the IRL and OWRS were sent to separate rooms to decide on their bids.
The IRL started the day with their original bid of $3.2 million, whereas OWRS' bid started at $1.6 million. OWRS came back to the judge with a matched bid.
The main difference was that OWRS' bid was to cover the liabilities, IRL's did not.
IRL returned with a higher bid that now included the liabilities to $13.5 million, in what appeared to be an obvious move to have only one premier open wheel series in North America.
Judge Otte rejected the bid late this afternoon and awarded the assets of CART to the OWRS to allow the Champ Cars to race this year. The first event is scheduled April 18 at Long Beach, California.
Stories from earlier in the day:
January 28, 2004 - Today was marked on many calendars as a "day of fireworks" as Judge Frank Otte, the presiding judge for the Chapter 11 filed by Championship Auto Racing Teams, Inc., will announce a final decision and oversee the transition of the CART assets.
At the Birch Bayh Federal Building and Courthouse in Indianapolis, those present for the ruling include CART's CEO Chris Pook, Indianapolis Racing League's founder and owner, Tony George and the Open Wheel Racing Series' partners, Paul Gentilozzi and Kevin Kalkhoven. Gerald Forsythe was notably missing, allowing his two OWRS partners to handle the issue with their attorneys and their announced CEO Richard P. Eidswick who was appointed in December to oversee the Bankruptcy filing and any transition.
In the audience were CART's John Lopes and former CEO Joe Heitzler, who represents the two Mexico races. Champ Car driver/team owner Adrian Fernandez, whose IRL team is currently at the Open Test in Homestead is also in attendance. Fernandez has an interest in both North America's premier open wheel series.
On hand were also Dale Coyne, Emerson Fittipaldi and representatives from many of the current Champ Car tracks, including California Speedway and Road America, both of whom have ongoing legal disagreements with CART after the 2003 season.
OWRS and CART reached a merger agreement on September 10, 2003. Due to a variety of issues, that agreement was rescinded and a new agreement was reached whereby OWRS would purchase certain assets of CART once the Chapter 11 was filed.
However, on January 13 of this year, 14 days after CART's initial appearance in court on December 30 of last year, the IRL also submitted a bid to buy certain CART assets, thus adding to the mix. OWRS countered that the IRL bid was too late to be considered.
Today, the fireworks started early as judge Otte disallowed OWRS request and granted IRL the right to bid. Now the auction of CART's assets begins.
The bidding for the CART assests began in earnest at the Birch Bayh Federal Building and Courthouse in Indianapolis, Indiana after the court recess once Judge Frank Otte ruled that the Championship Auto Racing Teams, Inc. Chapter 11 Bankruptcy will proceed.
Otte allowed the Indy Racing League request to bid for the CART assets, as well as the already approved Open Wheel Racing Series.
The IRL and OWRS representatives and attorneys have convened in separate rooms to make final bids after over one hour of analysis on the asset items in the courtroom.
Early rumours were verified that the IRL would bid on the current Champ Car Cosworth engines, that bid has been withdrawn. However, the IRL bid of over three million dollars still exist as they hope to take over some of the CART contracts, most notably current race tracks including the Long Beach Grand Prix event.
OWRS initial bid was near the two million dollar mark, mainly to hold existing contracts that CART holds plus to pay off all liabilities, they have since increased the amount of their original bid.
According to sources at the courthouse, the presiding judge is very firm in resolving the issue today, "We're going to decide it and we're going to decide it today," Otte stated.
THE HISTORY
INDIANAPOLIS (January 25, 2004)
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