NJMP Bankcruptcy protection

[gixxerzoli]

From Daily Journal march 9th article  http://www.thedailyjournal.com/article/20110307/NEWS01/110307001

MILLVILLE — The New Jersey Motorsports Park filed in U.S. Bankruptcy Court today seek-ing 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 re-structuring 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 restruc-ture 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 em-ployment 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.