Champ Car files for bankruptcy

The fallout from the Indy Car/Champ Car merger has begun to rear its ugly head. First, superpower team Forsythe Racing announced its departure from the scene. and now Champ Car has officially filed for bankruptcy. The disruption of the scheduled 2008 Champ Car season leaves contracts broken and bills to pay, but no event revenue to balance the budget. Bankruptcy court papers reveal that the dying series has a multitude of creditors knocking on its door. One of these is engine supplier Cosworth, which is seeking payment of $1.825 million. The compounded liabilities must add up to quite a hefty sum if the series is still in the negative even after the IRL's purchase of Champ Car's major assets. As part of the deal, Tony George is shoveling out $6 million for mobile support facilities along with a total of $4 million for the promotion and production of the 2008 Long Beach Grand Prix. Once the filing passes through court, the final edition of the contract between Indy Car and Champ Car can be inked.
[Source: AutoWeek]

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