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Champ Car Heading for Bankruptcy?
CC’s filing for liquidation could be the shortcut for reunification, SPEED’s Robin Miller reports.
Robin Miller  |  Posted February 12, 2008   Indianapolis, Ind.
Is the endgame at hand for Champ Car and the IRL? (LAT photo)

Tony George was still optimistic about a plan to unify open wheel racing for 2008 following his trip to Japan to try and reschedule the race at Motegi to accommodate Long Beach. But, by the time George returns to Indianapolis, there might only be one series standing anyway. The word on the street late Monday was that Champ Car plans to file bankruptcy within the next 24-48 hours which, effectively, will end the 12-year war in open wheel.

Steve Johnson, president of Champ Car, was asked about the bankruptcy rumor on Monday evening and responded in an email: "I have not been informed and we have been hearing the bankruptcy rumor for 18 months."

However, at least one definitive sign pointed to the end of a series that began as CART in 1979 and was re-titled Champ Car after Kevin Kalkhoven and Gerry Forsythe took it over in bankruptcy court in 2004.

Pat Caporali, hired a few weeks ago as CC's new director of public relations, reported for her first day of work on Monday. But she was informed it might be a good idea to try and get her old position back with Chip Ganassi because there would be no work for her.

Other employees were reportedly told to cease working on 2008 projects and some began cleaning out their desks.

It's not known whether a bankruptcy proceeding was part of the plan to have the Indy Racing League assume control of open wheel. George has proposed free cars, engines and $1.2 million to any and all CC teams able to fund themselves for a full season.

He also agreed to add Long Beach, Edmonton and Australia to the '08 schedule and possibly one more venue, so it might be necessary for Champ Car to declare bankruptcy in order for those tracks to strike new deals with George.

Kalkhoven and Forsythe promote the race at Long Beach, in addition to Toronto and Portland while Mike Lanigan, who co-owns cars with Paul Newman and Carl Haas, is the promoter at Houston and Cleveland. Forsythe also co-owns Mexico City. But the repercussions could come from Laguna Seca, Elkhart Lake, St. Jovite, Canada, Zolder in Belgium, Jerez in Spain and Assen in The Netherlands. None of those tracks would have races in '08 in a unified series.
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