INDIANAPOLIS - CART warned Thursday it could run out of money next month before shareholders consider a buyout offer to keep the series going.
Championship Auto Racing Teams Inc., which sanctions the Grand Prix of St. Petersburg, also disclosed in a Securities and Exchange Commission filing Thursday that it was in default on some of its financial obligations.
CART said Dec. 18 is the earliest possible date for a shareholder meeting to vote on the buyout, which would put the series under private ownership. Open Wheel Racing, formed by three CART team owners, has offered $7.4-million - about 56 cents a share - in August for all of CART's outstanding stock.
"If the merger is not completed, Championship expects that its cash resources will be depleted by the middle of December of 2003," CART said in its SEC filing. "Without sufficient financial resources, Championship will be required to cease operations and cancel the 2004 season."
CART warned in October that it would have to halt operations if the takeover was not completed and no alternative financing emerged.
That announcement came as the series announced losses of $77.9-million for the first nine months of the year.
CART said Thursday it was in default for some of its financial obligations, including a $473,000 payment that came due Oct. 8. It also said it paid $1.7-million to former CEO Joseph Heitzler to settle litigation.
The group that wants to buy CART - including car owners Gerald Forsythe, Paul Gentilozzi and Kevin Kalkoven - owns nearly 23 percent of its shares.
