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Thread: Regarding the new proposal...

  1. 12-08-2003 11:25 AM #1
    speedvis
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    Regarding the new proposal...

    Before too much of the wrong information gets out... let's get the facts on the table regarding a deadline scheduled for 9AM this morning:

    CART doesn't have to agree to anything. Obviously, the results of this would be the end of CART.

    This morning's date is relative to the BOD approval of the new OWRS plan.

    The agreement signing with OWRS has to occur before Friday this week.

    Then CART is reponsible for filing bankruptcy papers and the asset sale as soon as "practicable".

    We might not see ANY press release or SEC documents til after the agreement is signed with OWRS later this week... if they don't do it today.

    btw.. once the deal is signed OWRS provides financing regarding the liabilities.
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  2. 12-08-2003 12:22 PM #2
    tbyars
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    speed, CART is STILL a public company. Full disclosure will require that they inform the SEC of their decision, if there is one, as soon as it is taken. That is exactly the reason that OWRS placed their deadline in a public filing. If CART didn't need to inform anyone of their decision, then we wouldn't have known anything about it in the first place.

    This is a decision that impacts the holders of 14.7M shares of CART stock. You better believe they will have to file a report of any deciions they make ASAP.
  3. 12-08-2003 12:27 PM #3
    tbyars
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    Oh, and BTW, reread the agreement. OWRS is not providing financing concerning the liabilities. They are providing operational funds so CART can cntinue to operate for the next 60 days. Big difference. In fact, one of CART's larger liabilities right now is the money owed to teams for 2003, and that is coming right out of the amount OWRS is offering for the assets.
  4. 12-08-2003 12:32 PM #4
    speedvis
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    Originally posted by tbyars
    speed, CART is STILL a public company. Full disclosure will require that they inform the SEC of their decision, if there is one, as soon as it is taken. That is exactly the reason that OWRS placed their deadline in a public filing. If CART didn't need to inform anyone of their decision, then we wouldn't have known anything about it in the first place.

    This is a decision that impacts the holders of 14.7M shares of CART stock. You better believe they will have to file a report of any deciions they make ASAP.
    I agree...

    all I was saying was that... today... It's possible to make a decision without signing anything. The SEC and PR releases would logically come out after the agreement is signed with OWRS.
  5. 12-08-2003 12:34 PM #5
    speedvis
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    Originally posted by tbyars
    Oh, and BTW, reread the agreement. OWRS is not providing financing concerning the liabilities. They are providing operational funds so CART can cntinue to operate for the next 60 days. Big difference. In fact, one of CART's larger liabilities right now is the money owed to teams for 2003, and that is coming right out of the amount OWRS is offering for the assets.
    Yeah.. I probably have that wrong... but there was something about DIP financing... someone explained it to me as paying interest on the liabilities until the deal is complete.

    I'd do more research on it... just don't have the time right now.... and it's not the make or break part of the deal. thanks.
  6. 12-08-2003 12:59 PM #6
    tbyars
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    Originally posted by speedvis
    I agree...

    all I was saying was that... today... It's possible to make a decision without signing anything.
    On that point I agree, certainly.

    The SEC and PR releases would logically come out after the agreement is signed with OWRS.
    That's where I will take exception to you. AS SOON AS CART decides to accept the OWRS offer, they will need to inform the SEC and stockholders of that decision. Why? Because the stockholders still own the company, and they at least have the right of injunctive relief to stop any action before anything is signed. If some of the speculation was true that OWRS has taken this path because they determined the vote would be rejected in the first place, then logically you are likely to see such injunctive relief filed.

    We will see. However, I have expected all along that what appears to have happened would indeed happen; that CART would simply not respond to OWRS by the deadline. That puts the ball back in the OWRS court.
  7. 12-08-2003 01:40 PM #7
    indyracer56
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    From the star website:

    CART spokesman Eric Mauk said company attorneys have advised the board that a bankruptcy court is unlikely to approve any plan that ignores the stockholders.

    According to the CART statement released Tuesday night announcing the original offer had been withdrawn, the only alternative other than the new OWRS proposal is to cease operations and liquidate the company's remaining assets.
    Link: http://www.indystar.com/articles/2/099231-4242-037.html
  8. 12-08-2003 02:43 PM #8
    cosmoose
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    champweb is reporting that the vote to decide on bankruptcy is delayed until wed.

    champweb
  9. 12-08-2003 04:06 PM #9
    Las Vegas
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    ****! And I wore my good socks today...
  10. 12-09-2003 07:39 AM #10
    speedvis
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    Originally posted by tbyars
    That's where I will take exception to you. AS SOON AS CART decides to accept the OWRS offer, they will need to inform the SEC and stockholders of that decision.
    Just a question... Given this line of thinking shouldn't CART have made an announcement regarding "missing" the deadline?

    My take is still that unless thursday passes without news... CART could have made the decision to accept this offer yesterday. But it's also possible they replied with a counter-offer.... and I'm not sure that would have to be public yet.
  11. 12-09-2003 11:45 AM #11
    tbyars
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    speedy, again, I agree with that. Of course, if what we are hearing is indeed true, then CART hasn't decided anything yet and won't until tomorrow.

    I guess we just need to wait and see
  12. 12-09-2003 01:35 PM #12
    speedvis
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    Yep. Patience.
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