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NJMP successfully emerges from Chapter 11

 
Old 07-15-2011, 09:59 AM
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Thumbs up NJMP successfully emerges from Chapter 11

http://mobile.nj.com/advnj/pm_31083/...tguid=uA3A3cxS

Don't know if this link will paste correctly, but good news for all of us with a connection to or interest in the track!
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Old 07-15-2011, 10:01 AM
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That is great news.
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Old 07-15-2011, 11:05 AM
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Great!

Peter are you going to be at Jersey this coming up week with PCA or Ferrari Challenge? If so shoot me an email and let me know as we should meet up since I will be with CTSCC.
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Old 07-15-2011, 11:39 AM
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Originally Posted by Larry Herman View Post
That is great news.
Yes it is!
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Old 07-15-2011, 12:29 PM
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Perfecto!!!

Thanks for the post Peter!
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Old 07-15-2011, 01:26 PM
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that's great news!
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Old 07-15-2011, 02:12 PM
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Good news! I expected this would have been the case.
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Old 07-15-2011, 02:20 PM
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It looks like a management-led group with new money. Generally that means that they cleared out or crammed down their current creditors, but will generally continue down the same path business-wise. That's good thing! (Unless you were a creditor.)
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Old 07-15-2011, 02:39 PM
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I'm sure this was a type, but "“We’re finalizing the paperwork, and getting everything with the creditors in order, with new equity coming in and adhering to our restructuring plan, which includes playing our lenders,” said NJMP General Manager Brad Scott." I assume he meant to say Paying not Playing

For the Lazy:

MILLVILLE — After four months of Chapter 11 proceedings, a judge on Thursday approved the New Jersey Motorsports Park’s restructuring plan, allowing the park to emerge from bankruptcy.

The U.S. Bankruptcy Court judge’s decision allows NEI Motorsports, LLC, to purchase a majority stake in the park for approximately $22.5 million.

The group had previously provided the NJMP with a $2 million infusion of money for legal fees, food services at the park, operating costs, “priority” tax claims and to pay unsecured debt.

NEI is made of several park officials, including NJMP co-managing member and co-developer Lee Brahin, and will be headed by Brahin’s NJMP managing partner, R.J. Valentine.

“We’re finalizing the paperwork, and getting everything with the creditors in order, with new equity coming in and adhering to our restructuring plan, which includes playing our lenders,” said NJMP General Manager Brad Scott.

“This is actually a really positive development, going through bankruptcy so quickly; the judge was very complimentary.”

Officials at the NJMP declared Chapter 11 bankruptcy on March 7, after it had become evident they could not pay for the services required to host any of the races in the 2011 racing season.

Chief among those services was the presence of emergency medical technicians from the Millville Rescue Squad, which, as of March, was owed $520,000 in unpaid bills from the NJMP.

As part of the restructuring plan agreement with the Millville Rescue Squad, the NJMP paid $200,000 toward their bill in March. Another $200,000 payment is scheduled for this month.

The park’s largest lender, Merrill Lynch Mortgage Capital, Inc., now part of Bank of America, is the second factor that led the race track’s management to declare bankruptcy.

According to court documents, much of the park’s activities have been funded by a loan from Merrill Lynch totaling $30,354,205.14, and the NJMP management was unable to keep up with the payments.

This year, the loan with Merrill Lynch was up for renewal, and the park defaulted.
Through reorganization, the motorsports park seeks to eliminate approximately $10 million of that secured debt from their ledgers.

According to Scott, the lender will become a minority owner in the NJMP.

Howard Brownstein, of the Brownstein Corporation, the park’s counsel throughout the bankruptcy proceedings, stated the park will continue to work through its debt.

“For Merrill Lynch, which is now Bank of America, which is a six-year lender, (the NJMP) will restructure their debt, and reduce the amount of debt,” said Brownstein.

“This is a very happy ending, and even the judge said that it was rare to have a company out of bankruptcy on a March to July timeline.

“They’re preserving all their jobs, and this is as quick a turn-around as I’ve seen as a professional.”
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Old 07-15-2011, 03:04 PM
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Originally Posted by Potomac-Greg View Post
It looks like a management-led group with new money. Generally that means that they cleared out or crammed down their current creditors, but will generally continue down the same path business-wise. That's good thing! (Unless you were a creditor.)
unsecured creditor
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Old 07-15-2011, 03:31 PM
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I wonder if the Millville Rescue Squad had to gobble the $120,000 shortfall (520-200-200)?
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Old 07-15-2011, 04:43 PM
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Originally Posted by Bigpinekey View Post
I wonder if the Millville Rescue Squad had to gobble the $120,000 shortfall (520-200-200)?
Somehow I bet they were creatively made whole.
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Old 07-15-2011, 08:27 PM
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Originally Posted by MUSSBERGER View Post
Somehow I bet they were creatively made whole.
They're on site, so yes, that must be true.
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Old 07-16-2011, 07:49 AM
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Same clowns, different tent.
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Old 07-16-2011, 06:04 PM
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My brothers business sold several items to them. Total was under $2000, needless to say 14 months later he's not been paid and probably won't at this point. Not good to do to small business's in the area and i'm sure he's not the only one.

Glad to hear they're moving forward, but local support may not be so supportive in the future endeavors.
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