Coochas

Thanks for the updates CJ. I would say that news about ANY track is relevant in this forum.

944Cup

And how does bankruptcy effect the deposit now required to make a suite reservation? If made before bankruptcy? After bankruptcy? If the reservation is cancelled?

ninjabones

Wow, just got a notice from the US Bankrupcy Court that I'm officially a creditor. Put a deposit down a few weeks ago (prior to the bankrupcy filing) for a few reservations this summer. I wonder if NJMP will honor that money and credit me during my stays this summer, or whether I have to file this stupid claim to get my $400 back.

Phokaioglaukos

If you have to file a proof of claim and go into the general unsecured creditor pool you'll be lucky to get anything like your $400 back.

I expect your deposit and reservation will be honored.

gums

I'm affected and wondering as well, I also received that notice yesterday. I reserved multiple suites for two separate race weekends as soon as the calendars came out. I just hope they honor it.

ninjabones

I am at the track now... they honored my deposits and have assured me that business is as usual and that everyone's deposits will be honored throughout the season.

944Cup

Not directly answered is will a deposit be returned if the reservation is cancelled? This effects whether I make anymore reservations until they are out of bankruptcy.

gums

I logged a call to their lawyers' office and await a response.

ninjabones

I asked about this last week and actually tried to cancel my reservation for Friday evening (as my car wasn't ready). They told me that they would have accepted the cancellation, but that it must be at least three days before the event (and i had only given them 24 hours). My credit card had already been charged for the entire weekend. Anyway, I believe that all is well and that all at NJMP recognize the importance of taking care of the end user.

bobt993

^^^^^^^^^^ Hey!!! I would have used that room.

ninjabones

Hey bob, thought you'd prefer the HD projector and 70" screen in your trailer to the tiny little t.v. in the suite... in all honesty, the room was empty... I should have thought to offer to one of you guys (my bad).

G

Potomac-Greg

I'm not a bankruptcy attorney but I have a dozen of them within 25 yards of me. Basically, a pre-petition deposit and contract can be accepted or rejected by the debtor. If the debtor wants to honor it, they will. If not, they will not. If the commitment is rejected, then you have a claim. Your deposit MAY be refunded if it was held in some trust capacity and not commingled with the debtor's other assets.

My guess is that if the tracks are going to remain in business, they will have every incentive to honor and affirm their contracts with people booking rooms or with clubs booking track days. It may take a little time before that becomes clear. Of course, you could just call and ask too.

gums

I have just spoken with their lawyers, and a motion will be made to honor all pre-petition deposits and contracts and will most likely be passed. This will occur in early April. As the track will be functioning there is every intention to honor our contracts, just as Greg suggests.

cello

Bad news, IMO. TRG pulled plug on build-out plans. Lots of spin in the article. Also, if the info re RJ Valentine's ownership stake in both are true KB's statements are interesting to say the least (See bolded)...

I thought a first class racing facility on site would really be a bonus. NJMP has one peice of infrastucture that separates it from most eastern facilities and thats an adjacent airport thats big enough to land jets. TRG seemed to me to be the type of presence that might cause the fly in and drive types to put the track on their calendars. Seems like they cannot get enough traction in this econ to make real use of the airport next door...

Link: http://www.thedailyjournal.com/artic...text|FRONTPAGE

MILLVILLE -- The Racers Group, a high-profile diversified motorsports company, has dropped plans to build a $5 million headquarters and racing facility at New Jersey Motorsports Park.

TRG also began removing equipment Monday from leased garages here, though several months remain on the company's one-year lease agreement. Kevin Buckler, the company's founder and CEO, criticized the performance of the park's management in a statement explaining the decision.

The TRG project represented a major potential commercial investment in the park, as well as an opportunity to enhance its reputation in the racing community.

TRG's announcement comes as the Motorsports Park's owners are in federal court trying to salvage their business while retaining control of the three-year-old racetrack facility.

"When TRG first came to New Jersey Motorsports Park, we had very high hopes on our future plans together as did the park and its management," Buckler stated. "It was a major East Coast expansion for us, adding to our current successful operations in Petaluma, Calif., and Mooresville, N.C. We loved the local town and its people and their enthusiasm for our involvement in the community.

"The park has obviously had some challenges and things did not develop as we had hoped for," Buckler added. "We no longer support the management of the facility or its vision for the future."

The park on March 7 filed a petition in U.S. Bankruptcy Court seeking approval for a voluntary reorganization plan. The company was successful in a number of initial motions, including court support for a payment plan to Millville Rescue Squad, which was owed hundreds of thousands of dollars.

The next step for the park is filing a reorganization plan.

Buckler said his company is "red hot" and doesn't need "the distraction" posed by the park. He also was angry at how the park treated local creditors, adding, "Many of them are my friends."

"Our brand is very strong right now and our NASCAR and Sportscar racing programs arein full swing," Buckler said. "It is regrettable but in the best interest of TRG to distance ourselves from this current situation. Our lease is not up for several months, but we are removing all of our equipment, temporary personnel and signs as of today.We wish the park the best of luck in the future."

Earlier Monday, park officials said TRG maintains four single-car garages in a fenced-off area under a one-year lease. The park said it learned last week of TRG's intent to quit the lease early.

Park General Manager Brad Scott said that withdrawal itself is not a major setback. "I don't know how much business they did," he said.
However, park officials acknowledged TRG's plans to open an East Coast headquarters and racing facility would have been a major step forward in the Motorsports Park's development.

The TRG concept called for a roughly 40,000-square-foot facility that originally was to open in early 2010. Plans called for office space, garage areas, driving simulators, an entertainment/recreation complex, a banquet area, cigar and wine bars, and a showroom to sell vehicles.

On Monday, Scott said the project never reached the negotiation stage.
"We were going to sell some land to TRG and they were going to develop," he said. "We want to encourage development. We would welcome any commercial development, including the TRG project."

Park official Donald Fauerbach said the park and TRG "haven't had discussions about that for a year and a half."

Last October, TRG announced construction would start in fall 2010. Scott and Fauerbach said that announcement was made without the park's knowledge.
"The (press) release didn't come from us," Scott said. "I'm not sure of the source, but we were blindsided by that release."

Scott said the Motorsports Park did not issue its own corrective statement because "we choose not to always debate information that is inaccurate in the newspaper."

Larry Herman

What, is this guy on crack? It is a huge setback to lose that much future business and investment in the area and if the management does not see it that way, then no wonder why Buckler pulled out. Having TRG there would hav been a major coup, and they should have done EVERYTHING possible to make it happen. Based upon some of the decisions that the track has made, it is little wonder that they are in trouble.