|
CART ruling 'will happen today'
Imminent verdict over future of Champ Car
Today's courtroom action has matched that on the racetrack
The latest news from the federal bankruptcy court that will determine whether the Indy Racing League or the Open Wheel Racing Series will purchase the assets of CART, the bankrupt organisers of the Champ Car World Series, is that a decision will be reached today (Wednesday).
Following lengthy representations of bids by both the IRL and OWRS, Judge Frank Otte called a recess and said: "We are going to take a break now and, when we return, we will determine who buys it."
This followed a dramatic day in court, when the head of CART creditors' committee told the court that the OWRS bid was "substantially better" than the IRL's. The OWRS also revealed that it has increased its bid to match the IRL's $3.26million, and set aside $500,000 to settle the outstanding claim made by Fontana Speedway due its cancelled 2003 finale.
When we return, we will determine who buys it
Judge Frank Otte
Under its revised plan, the OWRS plan boasts a best case scenario of 100 per cent payback for CART's creditors (and a worse case of 62 per cent), while the IRL's best case scenario was 4.7 per cent (worst case 4.3 per cent).
Of the OWRS bid, CART's lawyer told the court: "That's a pretty good offer. The committee was enthused by it."
The attorney for the OWRS even called a motion that the auction should be called off, but Judge Otte responded by saying: "That's not how we conduct business here".
The IRL has also withdrawn its bid for CART's 100 Cosworth engines, which would have left the series powerless in 2004.
Stay tuned to autosport.com for the verdict when it happens.
|