Fat Lady sing, not just yet...

[MolsonBoy]

Read this on anothr forum....

Must be Plan "B"
--------------------------------------------------------
OPEN WHEEL RACING ANNOUNCES ALTERNATIVE PROPOSAL

LANSING, Mich. (Dec. 2, 2003) — Open Wheel Racing Series LLC (“OWRS”) today announced that it proposed to Championship Auto Racing Teams, Inc. (OTCBB: CPNT.OB) (“Championship”) that it acquire certain assets of Championship or CART, Inc. OWRS made the proposal during a meeting with representatives of Championship where it became clear that Championship is unlikely to fulfill one or more of the conditions required to close the previously announced merger agreement. The purpose of the proposal is to permit OWRS to continue the CART racing series next year.

The plan proposes that OWRS would acquire certain assets of Championship and its wholly owned subsidiary, CART, Inc. In order to permit Championship to operate until a transaction closes, OWRS would provide secured financing to Championship in an amount to be determined. Championship is currently considering the proposal.

According to OWRS partner Paul Gentilozzi: “This proposal will allow OWRS to acquire the assets necessary to continue the CART racing tradition into 2004. OWRS expects to retain a sufficient number of cars to meet CART’s contractual obligations with our race promoters.

“OWRS plans to maintain, and ultimately expand the CART racing series in the Americas and throughout the world. While OWRS is disappointed that the previously announced transaction appears no longer feasible, it remains committed to the CART racing series.”

[macdaddy]

Can't say that we haven't had anything to talk about today!

[Dov]

If my stress level keeps going up and down like this, I may have a CART attack!

[Brian W Keske]

Somehow I can't believe this is all as simple as it sounds.

This is the point where I really don't know what to believe right now until something concrete takes place. Words like 'amont to be determined', and 'considering the proposal' still say's there is much for both sides to consider.

[Omega99]

And three seconds ago I posted on the downer thread... I don't know what to believe any more!! GAH!!!

[sgjb]

It's all over.

The supposed brilliant minds behind CART have blown it. Anyone who believed CART would survive with this last minute attempt to save the series was dreaming. In order for anything to work out to make the 2004 season happen would have to have begun in early 2003 or late 2002. There was just noboby willing to step up. The bid was put together way to late and had many many problems. This was a sad attempt by a sad lot.

[indycool]

What seems to be happening is CART is done and OWRS is looking to explore cherry-picking the assets to start a new series. Teams that are considering a switch to IRL or ALMS need to do that earlier than if they decide to believe in the new deal, because they already have the equipment to do the new OWRS deal. With all the lawsuits that are about to be flying around, the new deal is going to be hard to believe in.

[BootsOntheSide]

At least people are still working away to try and sort something out. It's going to be difficult to sort this deal out, and I'm not sure how much Forsythe, Kalkkoven and Gentilozzi are willing to put in from their own pockets, despite all being rich guys, but we can't give up yet.

[gttouring]

i think Dov shouldn't be allowed to post anymore- this news is breaking my CART

[Tim Northcutt]

Boy...

This is almost as unbelievable as the soap operas my wife watches...

There are more strange twists and turns going down than I can keep track of...

So I assume that they aren't going to have the votes among the shareholders???

I also assume that various entities that may be owed money, or feel like they have a piece of the action, are going to sue -- jointly and severally -- OWRS and those who are now the key decision-makers for ART...

And that the only way to pick up the pieces is for OWRS to buy the essential pieces to this jumbled up puzzle to keep this series alive???

This really sucks....

[Jay]

yup, but on the other hand this is probably the best solution to clean up this mess...it would seperate CART and OWRS...and allow the racing that CART has put on to be reborn, while the legal mess is still being sorted out (which probably won't happen for a few years).

[rush1]

Time for CART's liquidation (but, really what assets does CART have to liquidate?) and a filing for bankruptcy protection. So its over. Lawsuits will follow. The owners of OWRS will have to dump millions into their series for a race in Long Beach in April, but this mess will probably still be in bankrutcy court at that time.

Good Mr. Haas tested his IRL cars in Pheonix

[climb]

Originally posted by Jay
yup, but on the other hand this is probably the best solution to clean up this mess...it would seperate CART and OWRS...and allow the racing that CART has put on to be reborn, while the legal mess is still being sorted out (which probably won't happen for a few years).

IMO if they have the money to carry this legal mess on, why don0t they use that money to finance the rebirth of the series? It would be way cheaper..

[indycool]

Some CART shareholders are getting/sending a message. There's been 1,115,821 shares traded in the first hour of trading, last at 41 cents.

[dirtfan]

Now it's 2.5 mil and two bits. I kinda wonder if the CART BOD types weren't keeping the rumor mill going while they dumped @ 54 cents?

[indycool]

Curiously, 190,000 shares were traded YESTERDAY, a big block at 54 cents. SOMEBODY knew SOMETHING.

Last I looked, it was 3,004,014 shares traded, last at 23 cents.

[Dov]

http://www.presstelegram.com/Stories...805533,00.html

CART: Seriesmay go bankrupt
By A.J. Perez

The sale of Championship Auto Racing Teams the organization that has raced at the Toyota Grand Prix of Long Beach since 1984 fell apart Tuesday, moving the series toward bankruptcy.

But CART may still be back as part of the downtown race following a major overhaul.

Open Wheel Racing Series the name of a group of investors was unwilling to make further concessions on a proposed purchase of the series for 56 cents per share ($8.2 million). As a result, cash-strapped CART will likely cease operations, according to a statement released late Tuesday night by the series after a board meeting in Indianapolis.

"We are basically moving toward purchasing the assets (after CART goes bankrupt),' said Kevin Kalkhoven, one of the three CART team owners that make up OWRS, in a phone interview. "We believe that there are advantages in the long run for (CART's) teams and sponsors. It will also remove the uncertainty of a (stockholder) vote, and I believe it will allow us to move more quickly.'

OWRS has made a preliminary offer to purchase CART's assets if it files for Chapter 11 bankruptcy protection. OWRS would "purchase certain assets of CART and assume certain liabilities,' the statement said.

Kalkhoven said he's in negotiations with CART and the two have yet to settle on how much that new deal would cost OWRS, although it's expected to be less expensive.

Any sale in bankruptcy would likely have to be approved in bankruptcy court.

A stockholder vote to approve the original sale terms was scheduled for Dec. 19. That vote now appears to be meaningless since the series could cease operations by that point.

CART has already defaulted on some of its obligations, although it has made payroll.

Kalkhoven said that CART would then run in 2004, although he said it was too early to determine how many teams would be part of the reformulated series.

"We do plan to meet our car- count obligations,' Kalkhoven said.

CART's Long Beach contract calls for a minimum of 18 cars.

CART's schedule is also in flux, but there is one race that Kalkhoven expects to be at the Long Beach Grand Prix scheduled for April 18.

"We certainly plan on being there,' he said. "We are anticipating and hoping we start the season in Long Beach.'

CART said in the statement that there is no guarantee that a deal could be struck with OWRS, meaning the Grand Prix Association of Long Beach would be seeking a replacement for its main event.

In Sunday's edition of the Press-Telegram, it was reported that the Indy Racing League CART's rival in U.S. open-wheel racing and the American Le Mans Series were candidates to replace CART if it goes under.

"We are currently assessing what these developments mean to the Toyota Grand Prix of Long Beach,' said Jim Michaelian, the president and CEO of the Grand Prix Association. "I can assure you that there will be a 30th anniversary of the Toyota Grand Prix of Long Beach that will take place April 16th through the 18th.'

The likely impending bankruptcy of CART would effectively end the run of President and CEO Chris Pook, the founder of the Long Beach Grand Prix who was hired two years ago to try to save the series.

Pook, called the "Father of American Street Racing,' fought an uphill battle from Day 1 thanks to years of mismanagement by the executives before him. The series was already losing millions as well as sponsors and teams as he took over as president and CEO in December 2001.

That trend continued and the inability to keep a minimum number of cars next year was the No. 1 reason the deal with OWRS fell through.

Tuesday's news comes one day after CART announced the postponement of the Grand Prix of St. Petersburg, a race promoted by the Grand Prix Association of Long Beach.

The Grand Prix Association also runs a race in Denver, which is scheduled for Aug. 15.

[rush1]

Originally posted by indycool
Curiously, 190,000 shares were traded YESTERDAY, a big block at 54 cents. SOMEBODY knew SOMETHING.

Last I looked, it was 3,004,014 shares traded, last at 23 cents.

Now trading at 18 cents, down 66% on the day. Think of the millions Forsythe has lost. He bought 311,800 shares in Sep of 2001 for about $14. A month later another 250,000 shares around $14.50. One year later he purchases 1,172,400 shares around $4. Whats another 4 million down the drain? When investing it pays not to be stubborn.

[paul-collins]

Originally posted by Dov
"We are currently assessing what these developments mean to the Toyota Grand Prix of Long Beach,' said Jim Michaelian, the president and CEO of the Grand Prix Association. "I can assure you that there will be a 30th anniversary of the Toyota Grand Prix of Long Beach that will take place April 16th through the 18th.'

There's the gauntlet. Will IRL move Motegi in anticipation, without waiting for OWRS to finish? I don't see how they can afford to wait it out past about Jan 1.

If we don't see the IRL move, and the CART assets get tied up in proceedings...

Will Scott Atherton nail down a much-needed April race date, nevermind the fact that the top teams will then have to pack up and fly to Le Mans for the Test Days? Or will it fall to Grand Am, who are in the area (Phoenix the weekend before) anyway and have a number of Toyota-powered cars?

[Jay]

That's nice rush1, but I don't think Forsythe bought those shares with making money as his interest.

Thanks for that Dov, it really does sound like OWRS has decided the better course of action is to buy up the assets of the bankrupt company, rather than continuing with this long drawn out process. In that case, the quicker CART goes into recievership the better.

Yes, 2004 is shaky, but at least you can rest assured that there are people with a lot of money trying to make it happen.

[indycool]

Good questions, paul.....lots of possible answers.

[The Snout]

Originally posted by Jay
That's nice rush1, but I don't think Forsythe bought those shares with making money as his interest.

Thanks for that Dov, it really does sound like OWRS has decided the better course of action is to buy up the assets of the bankrupt company, rather than continuing with this long drawn out process. In that case, the quicker CART goes into recievership the better.

Yes, 2004 is shaky, but at least you can rest assured that there are people with a lot of money trying to make it happen.

Well having had a look around today at the various reactions and what the press releases say, I think it's pretty hard to be able to say 2004 will happen or gloat that it won't happen.

For PG and KK if this deal is impossible to do the best thing for them would be to simply walk away, but they haven't, they've sat down and are coming at it from another angle. If OWRS walked away today then it would be all over, however until OWRS say they can't buy the assets then this party is still going. So it really doesn't matter how many quips there are at fat ladies and turning out the nights, there's still one eye over the shoulder at OWRS for a while yet.

As you said Jay, there's still people with a lot of money and knowledge trying to make this happen, and despite plenty of people willing the rats to jump over the side of the ship, fact is none have yet jumped.

[Dov]

After reading that last article I posted I feel much more positive about CART's/OWR's future then I did last night or this morning.

(1)KK said by OWRS purchasing CART's assets that it will remove the uncertainty of the (stockholders) vote.

(2)KK believes they will be able to move more quickly and get the deal done with CART.

P.S. CART/OWRS isn't going to go under! Think of this as CART's rebirth.....while already the best racing series in the world, it will be new and improved...that's if you can improve on something that is already perfect.

[vatuloa]

A report from Newscorp down under on the takeover
Indy under threat again
4Dec03

THE future of the Gold Coast Indy is again under a cloud after it emerged last night that the race's embattled governing body, Championship Auto Racing Teams (CART), may be forced to shut down.

Plans by a group of three billionaire businessmen to acquire CART and re-name it the Open Wheel Racing Series (OWRS) are now in doubt because CART cannot provide enough teams next year to meet conditions of sale.

A minimum number of participants was a condition of the offer to purchase more shares in the company. The sale is due for a shareholder vote on December 19.

In a statement, CART's chief financial officer Thomas Carter said the board of directors was "evaluating available alternatives to the merger, including the possibility of ceasing operations, winding up the company's affairs and liquidating its remaining assets".

OWRS has, in the meantime, made a substitute proposal to have CART file for bankruptcy under Chapter 11 of the US Bankruptcy Code.

Open Wheel Racing Series would then purchase necessary assets, assume several debts and operate the series.

OWRS is a newly-formed holding company which owns approximately 22.9 per cent of CART shares. It has offered shareholders 56c a share for the remaining stock

[f1manoz]

Originally posted by sgjb
It's all over.

No it's not. If you don't have anything positive to say, don't say anything at all.