Early reports from Indianapolis suggest that Open Wheel Racing Series has
been granted access to the assets it sought to acquire from the bankrupt CART
organization, effectively preserving the future of the Champ Car World Series
source:
crash.net
US bankruptcy court judge Frank Otte apparently rejected a higher bid from the
Indy Racing League - which had hoped to win the bidding in order to 'unify'
open-wheel racing in America - and awarded the assets to the consortium headed
by former CART team owners Gerald Forsythe, Kevin Kalkhoven and Paul Gentilozzi,
which had earlier upped its own initial bid in an effort to ensure that the
Champ Car category continued.
The court also heard from various parties representing the two sides in the
argument, with promoters from several Champ Car events explaining how an IRL
victory in the bidding would cost them millions of dollars in lost revenue.
Despite the IRL's lawyers attempting to discredit both the figures supplied by
OWRS and those referred to by those on the stand, it appears that the court has
found in favour of the bid that provided the best outcome for those involved in
the Champ Car series.
At one point Judge Otte called for a recess in proceedings in order to allow the
two warring factions to retire and consider what he called their 'final bids',
in an effort to ensure that the hearing-cum-auction ended on schedule.
When the court reconvened, the IRL submitted a new bid of $13.5million - up more
than $10million on its opening offer - plus a guarantee that the Long Beach
event and one each from Mexico and Canada would be staged within five years.
OWRS is also understood to have submitted an increased offer, but one that could
compete with that of its rival.
However, CART's creditors told the court that they preferred the OWRS bid
because the consortium had build in provisions to assume the series' debts and
attempt to repay creditors by at least 62 per cent.
More news to follow as we get it....from different sources...