Race Tracks: New Jersey Motorsports Park files for Chapter 11 bankruptcy

[sydude]

New Jersey Motorsports Park owners expect to get through Chapter 11 proceedings in 160 days

http://www.pressofatlanticcity.com/n...cc4c002e0.html

MILLVILLE - Operators of the New Jersey Motorsports Park here said today they expect to come out of bankruptcy protection in no more than 160 days, the time period during which federal courts should approve their financial restructuring plan.

When that happens, the park will receive a $2 million "cash infusion" from NEI Motorsports, an investor group that includes some of the park's owners, to help the raceway meet outstanding financial obligations, the operators said.

Under the Chapter 11 bankruptcy plan filed electronically with the federal courts on Monday evening, Merrill Lynch Mortgage Capital of New York will also reduce its $30 million in loans to the park by $10 million, said Lee Brahin, one of the park's managing partners. Merrill Lynch is the park's biggest creditor.

Meanwhile, the park will use $336,000 from Merrill Lynch interest and escrow accounts to help it prepare for the opening of the facility's racing season on Saturday, said Louis Lipsky, one of the park's business counsels who will serve as special counsel during the financial restructuring. The courts are expected to approve that authorization on Thursday, he said.

Of that money, $200,000 will be paid to the Millville Rescue Squad on Friday or Saturday, Lipsky said. The rescue squad handles emergency medical services for the park and "without the payment of these essential services, the racetrack cannot, by law, operate," bankruptcy papers read.

The rest of the money will essentially carry the park through until it starts receiving regular revenues from facility operations, Brahin and Lipsky said.

"The proposed actions in the debtors' bankruptcy cases will have the effect of restructuring the debtors' secured debt, obtaining an infusion of much-needed capital from new investors, and reorganizing the financial structure of the debtors' businesses," the park owners said in court documents.

"The debtors anticipate that these bankruptcy cases will also have the effect of allowing them to continue operations seamlessly through the racing season and focus management's efforts in managing their businesses."

That includes paying off creditors, park officials said.

"It should really put us on solid ground," Brahin said.

[jcraige]

Ughhh. This is a bummer. Lets hope this gets cleared up soon.

[dalyduo]

Aren't these the folks who also own and run VIR?