JANUARY 14, 2004
IRL looks at buying CART
The Indy Racing League has confirmed that it is looking at buying the assets of rival CART. IRL personnel looked at the available assets last week and have until January 23 to decide whether or not to make an offer to the bankruptcy court in Indianapolis. A purchase of the assets would end the split between CART and IRL, which began in 1996.
The CART board of directors all resigned on Monday to clear the way for whatever takeover now happens.
If IRL bids for the assets a US judge will decide which is the best offer, based on a number of different considerations, notably which bid will produce the most compensation for CART shareholders.
Open Wheel Racing Series has agreed to buy all of CART's assets for $1.6 million but it will also assume some liabilities, raising the actual cost to around $3m.
The assets are mainly contracts with race promoters although there are other assets, specifically equipment to use at events. IRL has been considering moving into road racing for some time. The major danger now is that the whole thing could descend into a legal mess, which everyone would like to avoid.
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