SurfaceUnits
04-24-05, 09:09 PM
Proposed ISC-CART settlement thwarted by judge
01:17 AM PDT on Thursday, April 21, 2005
http://www.pe.com/sports/motorsports/stories/PE_Sports_Local_D_m_notebook_21.f82b.html
By JIM SHORT / The Press-Enterprise
A tentative settlement to pay International Speedway Corp. at least $1.5 million has been reached in the lawsuit that followed the cancellation of the CART Champ Car race scheduled for California Speedway in Fontana in November 2003.
The race, unable to be run as scheduled due to the devastating wildfires, was canceled by CART president Chris Pook when he and speedway officials were unable to agree on an alternate date.
The 88 Corp., which operates the speedway for International Speedway Corp., filed suit against CART. The suit contended that the fires constituted a "force majeure" (major force) and under terms of the contract CART was obligated to return the $2.4 million sanctioning fee, minus an agreed-upon amount for expenses in planning and promoting the event.
CART subsequently went bankrupt. Its assets were sold to Open Wheel Racing Series LLC (OWRS) in U. S. Bankruptcy Court in Indianapolis and its liabilities, among them the lawsuit, were assigned to the CART Liquidation Trust.
Wes Harris, the senior director of investor relations for ISC, said by telephone Wednesday that a tentative settlement had been reached in which ISC would receive $1.5 million from the liquidation trust and up to $500,000 more from OWRS. But on Monday Judge Frank J. Otte wouldn't approve the deal.
"The issue is that there appears to be more than enough money in the liquidation trust to pay the full $2 million, plus other debts," Harris said.
As a result, ISC is guaranteed a minimum of $1.5 million and a maximum of $2 million, and any possible financial obligation by OWRS will be greatly reduced or completely erased.
At the time of its purchase of CART's assets, OWRS officials said they had $500,000 set aside for a possible settlement to the suit. Harris said no further court dates have been set, but that "maybe within the next month we'll get a better idea of how it will shake out." :laugh:
01:17 AM PDT on Thursday, April 21, 2005
http://www.pe.com/sports/motorsports/stories/PE_Sports_Local_D_m_notebook_21.f82b.html
By JIM SHORT / The Press-Enterprise
A tentative settlement to pay International Speedway Corp. at least $1.5 million has been reached in the lawsuit that followed the cancellation of the CART Champ Car race scheduled for California Speedway in Fontana in November 2003.
The race, unable to be run as scheduled due to the devastating wildfires, was canceled by CART president Chris Pook when he and speedway officials were unable to agree on an alternate date.
The 88 Corp., which operates the speedway for International Speedway Corp., filed suit against CART. The suit contended that the fires constituted a "force majeure" (major force) and under terms of the contract CART was obligated to return the $2.4 million sanctioning fee, minus an agreed-upon amount for expenses in planning and promoting the event.
CART subsequently went bankrupt. Its assets were sold to Open Wheel Racing Series LLC (OWRS) in U. S. Bankruptcy Court in Indianapolis and its liabilities, among them the lawsuit, were assigned to the CART Liquidation Trust.
Wes Harris, the senior director of investor relations for ISC, said by telephone Wednesday that a tentative settlement had been reached in which ISC would receive $1.5 million from the liquidation trust and up to $500,000 more from OWRS. But on Monday Judge Frank J. Otte wouldn't approve the deal.
"The issue is that there appears to be more than enough money in the liquidation trust to pay the full $2 million, plus other debts," Harris said.
As a result, ISC is guaranteed a minimum of $1.5 million and a maximum of $2 million, and any possible financial obligation by OWRS will be greatly reduced or completely erased.
At the time of its purchase of CART's assets, OWRS officials said they had $500,000 set aside for a possible settlement to the suit. Harris said no further court dates have been set, but that "maybe within the next month we'll get a better idea of how it will shake out." :laugh: