Tuesday, April 1, 2008

Champ Car funeral

As I’ve already mentioned, NOT all of the Stars made the jump over to the newly minted Indy Car World Series, as Tony George’s wrecking ball is now firmly delivering the final knock-out blows to the CCWS HQ in neighboring Northern Indianapolis as we speak.

And most of us are aware that not all of the previous Champ Car teams made the switch, with Forsythe Petitt Racing pulling a Rope a Dope on PT, Derrick Walker and Craig Gore going mano E mano, Paul Stoddart skipping the country and Pacific Coast Motorsports and Rocketsports being MIA.

But are you aware that Champ Car World Series has quietly filed for Chapter Eleven bankruptcy which was approved just twenty-four hours prior to Homestead qualifying. The move was made to ensure CCWS’s doors remained opened thru the final running of the Bulls, Err, Panoz’s in Long Beach, while George ‘N Co. are busy dining on Sushi in Motegi, Japan.

Interestingly, these proceedings have revealed that Tony George’s family owned company; Hulman & Co. shilled out $10 million to acquire CCWS’s Intellectual Property Rights, their mobile emergency hospital trailer and making the Four Mousketeer’s sign a No-compete clause.

Yet the funniest part is giving Gerald Forsythe and Kevin Kalkhoven consultancy roles and paying them each $2m apiece… (That’s two thirds of what the ENTIRE CCWS operation was valued at!)

Yet, while the legal documents claim that Champ Car has assets ranging in value between 10 to 50 million dollars total, the listing of creditors should make one’s cranium even more confused as the largest noted creditor is Cosworth at $1.38m, while PKV Racing is owed $645,883 and Forsythe Championship Racing is owed $327,961.

Yet as we all know, Cosworth Engineering was purchased by Kalkhoven and Forsythe along with the two teams named being assets of the former CCWS majority co-owners. Thus is this some form of creative cooking the books in order for Kevin and Gerry to write off a mere pittance of the millions they dumped into Champ Car the previous five seasons?

“The creditors are due to meet on the day after the event (Long Beach) and all assets will then be sold off and whatever debts can be paid will be paid.”