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New Jersey Motorsports Park news........

 
Old 03-08-2011, 11:55 AM
  #31  
DM993tt
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Not that I know anything about the subject, but its usu the first equity into a place like this are the ones that get hurt. But for this place to survive, they need to clean house with management. They took it from something that was a few yards away from breaking even to losing 1MM in short order. I knew the GM Kevin Whitman down there and liked him quite a bit, he was doing solid job, but was replaced bc he was one of the ones who stood up to the owners on certain issues. Anyhow I saw that as the beginning of the end when he was knocked out. I think Ch 11 is the first step to getting this place back in order.

I know Kevin Buckler has invested quite a bit of time & energy working with those guys to set up his east coast facility, I dont think he wants to see it go under. Love him or hate him, he's no Greg Loles - has a reputation for winning in the car and as a team manager. He is pretty savvy & has a passion for motorsport - so I wouldn't be surprised to see a group led by him make a move on this place. I think it would be a win.

I also know that some friends who are employees of NJMP are excited about the Ch 11 status, and feel more secure about their employment there than they have of late. I think you can be confident that this place is not going away, and will just change for the better - who knows, maybe they'll even re-configure it to link the 2 tracks as was originally intended. We can all hope right?
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Old 03-08-2011, 12:52 PM
  #32  
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Originally Posted by analogmike View Post
I thought RJ Valentine who races with TRG owned it already...
He's "a principal." What that means as far as ownership stake is anyone's guess.
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Old 03-08-2011, 02:17 PM
  #33  
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Originally Posted by DM993tt View Post
- who knows, maybe they'll even re-configure it to link the 2 tracks as was originally intended. We can all hope right?
Only if someone can convince the damn bog turtles to re-locate.
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Old 03-08-2011, 02:42 PM
  #34  
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Originally Posted by Gofishracing View Post
Rennlist purchase !!!
I'm in!
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Old 03-08-2011, 05:51 PM
  #35  
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I'm hoping we'll be ok on this, but I'm an optimist and pretty clueless as to financial wranglings. If NJMP caved, I.....just......don't .......know........what........I'd.........do..........
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Old 03-08-2011, 06:02 PM
  #36  
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Originally Posted by Coochas View Post
I'm in!
Is this like a Group buy ? I'll take 2 !
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Old 03-09-2011, 12:52 PM
  #37  
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One of my bankruptcy partners pulled up some of the documents filed with the court.

The certification in support of the motion for a cash collateral order filed at the same time as the case states that the senior secured lender (Merill Lynch Mortgage Capital Inc. has agreed to allow the use of the cash that is collateral for its loans for about four weeks. The cash is needed to pay the Millville Rescue Squad, insurance and other essential services. The certification also states that the debtors have worked with the lender to restructure the loans--$10 million of the $30 million in mortgage debt would be reclassified as unsecured debt and some of the current investors would invest $2 million in new equity for a post-reorg stake of about 75% with the senior lender getting just under 20%. There would be set aside $368,000 for the unsecured creiditors, not including the $10 million of debt newly classified as unsecured debt due to the senior lender. That is expected to allow seamless operation through the racing season and lead to a quick and cooperative resolution of the bankruptcy case.

There is also a series of three term sheets for the debt restructuring that go into greater detail. The current equity is zeroed out, but that does not apply to membership "interests" which are not equity in the debtors. What membership interests are is more of a license that will either be assumed or rejected by the debtors. I did not see anything in the term sheets about the members, but I expect that there will be no change. Membership will continue to mean the right to pay a blacktop fee to drive during a member day and rent suites at a discounted rate.
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Old 03-09-2011, 02:42 PM
  #38  
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Originally Posted by Phokaioglaukos View Post
One of my bankruptcy partners pulled up some of the documents filed with the court.
Thanks for posting that. In summary: prior equity holders are wiped out, the debt is restructured, there is a $350K budget to pay existing creditors, memberships remain intact, and there is $2M in fresh equity. Presumably a judge approved this in conjunction with an operating plan that demonstrates viability under the new capital structure. So net net probably good news for the facility and its users, but a bitter pill for the original investors.
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Old 03-09-2011, 02:57 PM
  #39  
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That's a good summary, Brandon. The $2.0 million of new equity will go $500,000 for fees and expenses, $50,000 for priority tax claims, $209,222 for Ovations [food service?], $368,000 general unsecured creditors, $336,000 to fund reserves and $500,000 for operating costs.

Viability will be demonstrated by the new money (including Lee Brahin, a current investor) buying equity and the creditors will be assured the deal is as good as it can be by a court-supervised auction process where the deal the new money struck with the secured lender may be topped by outsiders.

Anyone here want to bid?
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Old 03-09-2011, 03:11 PM
  #40  
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Originally Posted by WHB Porsche View Post
He's "a principal." What that means as far as ownership stake is anyone's guess.
I believe he was involved in the "karting" portion of the track, since he also owns F1Outdoors and F1Boston (karting facilities).
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Old 03-15-2011, 10:32 AM
  #41  
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In case anyone is interested, or following this, it looks like as a result of the Bankruptcy filing, owner Lee Brahin will (was forced to ;-) increase his ownership stake and become co-managing partner with RJ Valentine, previously a minority partner, who will increase his stake and who will "become co-managing partner with Brahin" and assume (with Brahin, I presume?) "managerial responsibility for marketing activities at the Park". Harvey Seigel, the other owner, "will retain his ownership stake".

Link: http://www.pressofatlanticcity.com/n...cc4c03286.html .

One would assume the Lender decreased its position in the Bankruptcy on the promise/agreement that the guys above increase their respective personal stakes in the Park. Good news as personal stakes always bring incentive to succeed . And the above would seem to signal good tidings re TRG's plan for a presence there. That, I am looking forward to ..

If you guys aren't interested in this (as it is only peripherally related to 'DE & Racing'), just let me know and I will stop the updates on any 'real' news..
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Old 03-15-2011, 11:24 AM
  #42  
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thx for the update!
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Old 03-15-2011, 11:50 AM
  #43  
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Originally Posted by cello View Post
If you guys aren't interested in this (as it is only peripherally related to 'DE & Racing'), just let me know and I will stop the updates on any 'real' news..
Of course we're interested, it's easy enough to avoid reading if you're not.
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Old 03-15-2011, 12:23 PM
  #44  
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Very interested in this. If the F1 fanbois would stop posting about that mess, it would be nice as it has nothing to do with Porsche racing or DE.
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Old 03-15-2011, 12:47 PM
  #45  
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Originally Posted by DM993tt View Post
thx for the update!
+1!
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