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

 
Old 03-07-2011, 07:28 PM
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cello
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Default New Jersey Motorsports Park news........

NJMP has filed for Ch 11 Bankruptcy protection. Plan is to re-organize debt structure. No affect on track events, apparently. I do wonder if this changes TRGs plans there, tho..

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

Text:
...
MILLVILLE — The New Jersey Motorsports Park filed in U.S. Bankruptcy Court today seeking Chapter 11 protection from creditors while it reorganizes.

The Motorsports Park’s financial problems surfaced about a month ago when it was disclosed that the Millville Rescue Squad was demanding settlement of bills for the coverage it provides for track events.

The park and squad concluded a private agreement.

Park Manager Brad Scott released the following statement at 2 p.m.:

New Jersey Motorsports Park (NJMP) announced a reorganization plan that includes the restructuring of debt, addition of new equity, and the filing of Chapter 11 today, in a move that management feels confident will secure the Park’s future operations.

NJMP has additionally agreed to terms with its primary lender that will enable it to restructure its debt through the bankruptcy filing.

NJMP Owner and Managing Partner Lee Brahin stated: “Although the decision to file Chap-ter 11 was a very difficult one, it was deemed necessary to protect future operations and to allow the Park to continue providing employment and other economic support to the local and regional communities.

“Our overall plan for the future is still sound, he continued. “Our renegotiated debt financing will enable us to move forward with our existing operational plan, although we will continue to reduce operating expenses and are in the process of renegotiating debt with vendors. We are also receiving an infusion of new equity from certain investors, which will bolster NJMP’s liquidity position.”

“NJMP General Manager Brad Scott stated that the realignment of debt will not affect employment numbers, chiefly because needed reductions have already occurred.

“We wish to emphasize that none of these changes will affect our scheduled 2011 racing and so-cial events, Drivers Club Memberships, season passes, pre-event ticket sales, gift certificates, deposits or any other NJMP operation,” reported Scott.

...
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Old 03-07-2011, 07:38 PM
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Coochas
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It's got to be a tough business to make ends meet.
BTW, I am renting your buddy's condo there! Thanks for the heads up.
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Old 03-07-2011, 07:42 PM
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93 FireHawk 968
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They did build a "World Class" facility that I'm glad exists. Their filing bankruptcy for a re-org of debt is not unlike what so many other businesses have done over the past few years, especially those in various forms of real estate development.

Wonder if the price of those Villa's will ever go down? Still way too expensive for the market their in.
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Old 03-07-2011, 07:46 PM
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Dave, happy it worked out. I need a few more days before I know my schedule is clear. Really hope to see you at that event as it sounds great!

Re NJMP, I could go on and on. But the biggest self made obstacle is the fact that they financed the place when money was relatively easy and at numbers that, frankly, just don't jibe with what is actually on the ground there, if you know what I mean. Chasing their tails ever since IMHO.. One man's opinion FWIW.
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Old 03-07-2011, 07:49 PM
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So is this a pre-packaged 11? How can the "memberships" be given preferential treatment over other unsecured creditors? I hope none of the car clubs track deposits aren't in jeopardy.

BTW anyone that got paid in the prior 90 days (rescue squad) they may be looking for a claw back.
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Old 03-07-2011, 08:39 PM
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let's hope they can fix the money trouble and keep it together. Would hate to see the loss of a great facility!
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Old 03-07-2011, 09:14 PM
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I am sure glad that I bagged out on my membership when the went from one to two tracks. Lost my deposits but still came out ahead. Some smart bankruptcy attorney for the unsecured creditors is going to have a good time with this filing. I don't see how a membership is anything other than equity.

What will really suck is if the small local vendors get stuck holding the bag and get paid a few cents on the dollar. They were the people that helped make this track happen. No small company can afford a hit in this economy.
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Old 03-07-2011, 09:21 PM
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Originally Posted by MUSSBERGER View Post
So is this a pre-packaged 11? How can the "memberships" be given preferential treatment over other unsecured creditors? I hope none of the car clubs track deposits aren't in jeopardy.

BTW anyone that got paid in the prior 90 days (rescue squad) they may be looking for a claw back.
No expert here but prob not 'pre-packaged' in the GM sense. An 11 simply provides a Court approved Plan to pay back existing debt over time (as approved) and on terms (amounts and interest rates can be 'crammed down', etc) that creditors are forced to swallow. My guess (pure speculation) is that this action was taken with the knowledge and approval of the main financiers. Remember, without customers (members, car clubs, etc) no one gets their investment dollars out/back. So track deposits are prob fairly safe as even the Lenders would honor same to keep the facility open and viable (while scrambling to find a buyer, etc). Not much to worry about unless they owe you $ . Like Dylan says: "Steal a little and they throw you in jail, steal a lot and they make you king". Not to mean anyone stole anything here - just the Trump model of business/finance at play (ask his Bondholders ).

Last edited by cello; 03-07-2011 at 10:39 PM. Reason: typos
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Old 03-07-2011, 09:27 PM
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Wonder if Monticello will follow suit.... if so, that may be good news for the non-members, since they would be able to rewrite the contracts will them, and allow more equity into Monti by offering more clubs track days...

As for NJMP -- it was a dream, and they made it happen. They have some good high-profile races every year there- but that coupled with club races/DE's isn't enough to sustain the property, I suppose. Hence the need for the villas and such. And it hasn't helped them that the economy tanked just as they opened -- otherwise I am sure they would have more members and $$ coming in. Hope they survive -- would hate to see a new track go away so soon. The crazy part is that their model was VIR, which IIRC, is still going strong. Wonder what the difference is?

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Old 03-07-2011, 09:34 PM
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Originally Posted by Z-man View Post
Wonder if Monticello will follow suit.... if so, that may be good news for the non-members, since they would be able to rewrite the contracts will them, and allow more equity into Monti by offering more clubs track days...

As for NJMP -- it was a dream, and they made it happen. They have some good high-profile races every year there- but that coupled with club races/DE's isn't enough to sustain the property, I suppose. Hence the need for the villas and such. And it hasn't helped them that the economy tanked just as they opened -- otherwise I am sure they would have more members and $$ coming in. Hope they survive -- would hate to see a new track go away so soon. The crazy part is that their model was VIR, which IIRC, is still going strong. Wonder what the difference is?

-Z-man.
Warmer weather = more track days.
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Old 03-07-2011, 09:53 PM
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Originally Posted by CWhaley View Post
let's hope they can fix the money trouble and keep it together. Would hate to see the loss of a great facility!
right on
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Old 03-07-2011, 09:53 PM
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Ugh. Sad news indeed. Racetracks always are a much better deal for their 2nd owners...
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Old 03-07-2011, 10:08 PM
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I have enjoyed several events there and was looking forward to several more this season....hope they do hang in there !

Just curious...do they do any night events with clubs ?
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Old 03-07-2011, 10:16 PM
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I know they do an scca overnight enduro, nicknamed "the devil in the dark".

They really couldn't have picked a worse time to open. Hope the facility remains well maintained.
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Old 03-07-2011, 10:19 PM
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Originally Posted by Veloce Raptor View Post
Ugh. Sad news indeed. Racetracks always are a much better deal for their 2nd owners...
Why build one from scratch when you can buy a used one that the owner needs to get out of for 50 cents on the dollar.
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