Kitcat Posted March 10, 2011 Share Posted March 10, 2011 They recently filed, per a post on Lotustalk. Those of us planning on attending the se7ens trackday there this summer will need to keep an eye on this. Link to comment Share on other sites More sharing options...
Boxologist Posted March 10, 2011 Share Posted March 10, 2011 no u don't. just typical business maneuvering in the 21st century. they'll be fine in 158 days. Link to comment Share on other sites More sharing options...
yellowss7 Posted March 10, 2011 Share Posted March 10, 2011 (edited) Yeah, I just saw this too. Hope they make it thru, as it's a nice track only 1 hour from me. Tom Edited March 12, 2011 by yellowss7 Link to comment Share on other sites More sharing options...
Croc Posted March 13, 2011 Share Posted March 13, 2011 Its just Chapter 11 debt restructuring. The loan on the townhouse/rental accommodation was not being serviced as there were no cashflow from the units like they expected/hoped for. Give them a few months and they will be out of it. We may have to pay a little extra for the cheap accommodation on our track day but the circuit, its employees and operations should be unharmed. Link to comment Share on other sites More sharing options...
Kitcat Posted March 13, 2011 Author Share Posted March 13, 2011 (edited) Mike: The article I read said they owe $10-15M more than they have. The trigger event was they owed .5M to the ambulance service that is at the track on standby at every event, even track days like ours. Without that, they were unable to function. Restructuring requires the cooperation of the creditors (better to get 50 cents on the dollar, than nothing), but sometimes a creditor believes the assets can be sold for more (55 cents on the dollar) and liquidation results. I am crossing my fingers that this works out. From what I can glean from the news articles,it looks like it will but someone is getting stuck holding a worthless $10M IOU. A similar situation didn't have a happy ending at Bluegrass Motorsports Park across the river from me. Mike M Edited March 13, 2011 by Kitcat Link to comment Share on other sites More sharing options...
jbanker Posted March 14, 2011 Share Posted March 14, 2011 Hey Mike, Did Bluegrass have to finally file? I know we had a couple of SCCA club races scheduled with them last Summer but obviously that never happened. It did not look to promising for the future. Jack Link to comment Share on other sites More sharing options...
Kitcat Posted March 14, 2011 Author Share Posted March 14, 2011 Jack: I dont know what happened to Bluegrass other than they ran out of $ and closed, with the track 9/10ths done. I was really looking forward to having a nearby track for trackdays. Some folks bought those $100K memberships-they cant be too happy! Who knows, maybe it will be resuscitated at some point? Mike Link to comment Share on other sites More sharing options...
Croc Posted March 15, 2011 Share Posted March 15, 2011 I From what I can glean from the news articles,it looks like it will but someone is getting stuck holding a worthless $10M IOU. Yes they are stuck with worthless debt. The equity and bondholders will take a pretty steep haircut. Their issue really comes from the lack of sufficient revenue from the money invested to build the place. Not only was it planned to be a motor racing facility but real estate development was the key to adding sufficient revenue/cahs flow to pay down the debt in the original business plans from the circuit development. I am expecting that the the creditors will be realistic and take a haircut as if it goes out of business then there is no money to anybody. Liquidation is a scorched earth option where no one will come out with any money other than the savvy person who will buy it at a firesale price. Link to comment Share on other sites More sharing options...
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