CART approves OWRS latest proposal!

[Nasty500]

Finally CART can move up and on as a private company again.

[Robstar]

Awesome News !!
Where did you find this...
Do you have a link ?

[Nasty500]

AR1, more details to follow, no other info at this time

[Railbird]

one step at a time.

[JoeBob]

Open Wheel Racing Series, LLC (“Open Wheel”) has completed its negotiations with CART, Inc. and Championship Auto Racing Teams, Inc. to purchase specific assets, including contracts with promoters, sponsors, and teams, through the planned Chapter 11 bankruptcy process of CART, Inc. This agreement allows for the continuation of the 2004 Champ Car World Series season.

Open Wheel will begin the immediate planning and implementation of the operational details required to conduct the Champ Car World Series in 2004 as the closing of the transaction continues. The closing of the transaction is subject to certain closing conditions including the approval of the bankruptcy court.

“Our goal throughout this process was for an expedient resolution so our teams and sponsors could proceed with full confidence,” said Paul Gentilozzi, an Open Wheel partner. “We’re extremely grateful to all of the sponsors, teams, promoters, and fans that have expressed their ongoing encouragement. Their loyalty has been phenomenal; they’ve stayed with us throughout this initiative and have supported us at every turn.

“Effective immediately, we’re ready to begin work to implement our vision for Champ Car in 2004 and for many seasons beyond,” explained Gentilozzi. “Our purchase was with the express intent of supporting our teams and sponsors competing now and in the future.

“Therefore, as a show of strength and good faith, Open Wheel has accepted the liability of almost $2.7 million in 2003 prize monies which we will pay to our teams that elect to participate in the 2004 Champ Car season,” revealed Gentilozzi.

“There’s been a great deal of speculation about car count for next year,” continued Gentilozzi. “We talk to our teams on a daily basis and we’re more than confident that we’ll have a full field of cars in 2004. In addition, we anticipate new team and driver announcements in the very near future.”

Kevin Kalkhoven, an Open Wheel partner and co-owner of PK Racing, was instrumental in the acquisition process. “This was an extremely complex deal,” noted Kalkhoven, former CEO of JDS Uniphase, a leading global supplier of components and modules for advanced fiber optic telecommunications networks. “I pride myself in my knowledge and expertise in acquisitions and mergers, but I was surprised by the complexity of the transaction.

“But I’m positive the agreed upon format is definitely the correct one and one which will allow our Series to grow and flourish in 2004 and beyond,” added Kalkhoven.

OWRS partner Gerald Forsythe has had a long emotional and financial commitment to the Champ Car World Series and is convinced that the asset purchase agreement was key to ensure the Series’ future. “This was absolutely the right move for the future and longevity of Champ Car,” commented Forsythe, who co-owns Team Player’s and is a limited partner of the BAR Formula One team. “I have every confidence that this decision will prove successful.”

In a related move, Open Wheel nominee Richard P. Eidswick has been appointed as CEO of CART, Inc. to see the organization through the Chapter 11 proceedings. During the transition, Eidswick will report to the CART Board of Directors.

Eidswick is co-founder and Managing Director of Arbor Partners, an Ann Arbor, Mich.-based venture capital firm which primarily invests in companies focused on the creation of next-generation application software and communication technologies. In addition to capital, Arbor Partners offers clients a comprehensive set of business-building resources including assistance with strategic planning, development of product and marketing strategies, and the establishment of corporate partnerships.

“I’m confident that the Champ Car World Series will emerge from the bankruptcy process stronger than ever,” said Eidswick. “I look forward to working with all parties involved to build on our strengths and explore new opportunities as we position Champ Car for 2004 and beyond.”

The Champ Car World Series 2004 racing season begins on April 18 with its 22nd running of the Toyota Grand Prix of Long Beach. Reigning Champ Car Drivers’ Champion Paul Tracy will return to defend his 2003 Long Beach win.

[lone_groover]

Sounds like a decent proposal.

:)

[fourrunner]

I'm so Glad this has finally happened...

As of tommorow OWRS proceeds with the 2004 season... these guys know what they're doing.. they're paying 2003 Prize Money out of their own pockets as a show of "Good Faith to the teams who supported the series during the "iffy" period.

These guys are serious about next year! :thumbup:

[nissan gtp]

this is very very good.

:thumbup: :thumbup: :thumbup:

[Lizzerd]

Here's to a new beginning for the cars and stars we all love. I think I'll have another beer before bed now! :thumbup: :thumbup:

[Kiwifan]

Some of us (blindly) never gave up hope of watching Champ Cars in 04. I'm pretty happy tonight!! :) :)

Thanks.

Rusty.

[Wheel-Nut]

Maybe I fell asleep again. Does this mean that the vote to be held on December 19 doesn't matter?

[racer2c]

I am happy. :)

[rabbit]

Sunday morning I woke up to find out we got Saddam. This morning I woke up to find out this.

I can't wait to wake up tomorrow!

[Turn7]

Originally posted by Wheel-Nut
Maybe I fell asleep again. Does this mean that the vote to be held on December 19 doesn't matter?

Yes. As you where napping, OWRS withdrew its offer to buy CART. Therefore, no shareholder vote was needed on the 19th because there is no longer a need to vote on a deal that doesn't exist.

So, the way I understand it is like this, CART files for Chapter 11 protection and liquidates its holdings to OWRS for 300,000 dollars. OWRS doesn't buy the corp. and therefore is not responsible for any outstanding liabilities but, obtained what they considered to be the "valuable" assets at a greatly discounted price compared to what they originally offered to buy the company for.

Basically, if your a shareholder, you just screwed so tight thtat the head broke off and your forever buried.

Not really any change from the previous deal. Instead of getting
.00000000000000000000000000000000000000000001 pennies on the dollar you get nada.

[Wheel-Nut]

Thanks T7 . . . I'm not a share holder, I know better than that. I'd rather throw my money at something that has more of a guarantee, you know, like the Lottery!!!

:D

[nz_climber]

Aslong as they are racing Im happy :)

this is very good news for every1

:thumbup: :thumbup:

[turn1]

Yahoo!

Now we need to find out who is really going to run the Cleveland race and why Mid-Ohio can't be added to the schedule....

[JoeBob]

OWRS took out their checkbooks again:

http://www.trans-amseries.com/news/1041.html


Open Wheel Racing Series To Purchase Trans-Am Racing, LLC
LANSING, Mich. - Effective Jan. 1, 2004, Open Wheel Racing Series, LLC (“Open Wheel”) will purchase Trans-Am Racing, LLC (“TAR”), it was announced jointly today by Open Wheel partner Paul Gentilozzi and TAR Executive Director John Clagett. TAR operates the Motorock Trans-Am Tour for the BFGoodrich Tires Cup.

The move follows an announcement made by Open Wheel that it would purchase specific assets, including contracts with promoters, sponsors, and teams, through the planned Chapter 11 bankruptcy process of CART, Inc.

Open Wheel will immediately become involved in the planning of the 2004 Trans-Am Tour, which will herald an alignment of America’s premier sedan road racing tour with the world’s preeminent open wheel racing series.

“The Trans-Am Tour needed to continue its association with America’s premier road racing circuits, and the synergy created by integrating it under the Open Wheel umbrella along with the Champ Car World Series allows us to meet that goal,” said Gentilozzi. “Bringing Champ Car and Trans-Am under the same roof will also allow us to best capitalize on both series’ strengths, while more effectively managing both.”

“This is another positive step for Trans-Am, and we are pleased to join Champ Car under the Open Wheel banner,” said Clagett. “Planning for the 2004 season is well underway, and we expect to announce an exciting and ambitious Trans-Am racing schedule the week of Dec. 21.”

It has also been reported that OWRS is still in talks with CART to aquire the Toyota Atlantic Series.

I've always enjoyed the ChampCar/Trans Am events. Hopefully this means we'll see both series at all Road/Street races.

[pchall]

Champcars, Atlantics, and TransAm under one roof? That would be a road and street and airport racing triple threat.

Gotta love it.

[JLMannin]

Looks like a group of owners with a vision.

[Wheel-Nut]

Only a matter of time before they buy the open wheel oval series!!

You heard it here first.

[cartcanuck]

Originally posted by pchall
Champcars, Atlantics, and TransAm under one roof? That would be a road and street and airport racing triple threat.

Gotta love it.

No kidding. Can you imagine being able to see all three series every weekend!!! And who's to say there won't be some crossover with drivers too! :) Sounds like some fun fun racing weekends coming up in 2004. :) :) :) "racing in 2004"....sounds good doesn't it!

[Lizzerd]

Originally posted by Wheel-Nut
Only a matter of time before they buy the open wheel oval series!!

You heard it here first.

Haha! Wouldn't that be a hoot? Impossible to put a price tag on it, though. Too bad.

[Turn7]

Those three series ran at Houston and it was great to see the lines change with the various equipment.

Nothing like hearing the big V-8 rummble bouncing off of the concrete walls and echoing throughout the city center then countered by the high rev's and turbo whine of a champ car a short time later.

[JoeBob]

Those three, along with BDPS ran at Road America for quite a few years. (They weren't there this year, due to to the date conflict with the three rivers race up in Canada.) It was always a great show, with the Trans Am race Saturday, and then BDPS and Atlantics Sunday morning before the Champ Cars.

(And if you thought CART in the rain was a huge mess a couple of years ago, you should have seen Trans Am in those conditions. :eek: )

[rabbit]

Does anyone besides me find it ironic that Trans-Am was purchased by Open Wheel Race Series LLC?:gomer:

[turn1]

Originally posted by rabbit
Does anyone besides me find it ironic that Trans-Am was purchased by Open Wheel Race Series LLC?:gomer:

Yeah I certainly got a chuckle. Should make this year interesting - maybe Trans-Am under the lights as well?