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03-11-2011, 01:22 PM
Bankruptcy judge approves New Jersey Motorsports Park's first day motions
MILLVILLE — The New Jersey Motorsports Park had its first day in United States Bankruptcy Court Thursday, as a judge in Camden approved all seven of the park’s motions, including those asking permission to pay wages and its debt to the Millville Rescue Squad.
Judge Goria Burns’ approval of the NJMP’s “first day motions�? allows the race track to pay its workers, guarantee the presence of emergency medical technicians and perform other required actions to ensure the park can continue operating throughout the upcoming 2011 racing season. The judge also authorized the park to continue using its existing bank accounts, and prohibited utilities from altering or disconnecting service to the NJMP.
However, according to NJMP attorney Louis Lipsky, the decision was somewhat a formality. “NJMP officials decided to file Chapter 11 bankruptcy on the supposition that the motions would be approved,�? said Lipsky, speaking from his Philadelphia office. “It never entered the conversation that the motions would be rejected.�? Lipsky on Thursday also stated that at least two of the park’s largest creditors will be paid in full.
The NJMP owes the Millville Rescue Squad more than $520,000 in unpaid bills from last year. The Cumberland Empowerment Zone Corporation is owed $425,000 from a December 2009 loan. According to Lipsky, both will be paid in full. “It was confirmed that the Millville Rescue Squad will be paid in full, the City of Millville will be paid in full and the CCEZ will be 100 percent paid in full,�? said Lipsky. “All other parties will be treated according to the plan term sheet filed (with the bankruptcy documents submitted to the court on March 7).�? The City of Millville had issued a $600,000 loan to the park in the run-up to its summer 2009 opening.
Millville officials have state the NJMP has never missed a payment on that loan. Lipsky said that will continue, with monthly payments. The CEZC will also receive monthly payments. As for the Millville Rescue Squad, an agreement with the park dictates the NJMP must pay an installment of $200,000 today. Another $200,000 payment is due this summer. The balance will be paid over “a number of months,�? according to Lipsky.
“The racing season will start soon, and the business will operate as normal — nothing will change from the spectator’s perspective,�? added the attorney. “People will still be hired for the season, and no employees are going to be laid off.�?
NJMP officials will next meet with its creditors on March 24. A cash collateral hearing has been scheduled for April 12.
http://www.nj.com/cumberland/index.ssf/2...s_new.html
MILLVILLE — The New Jersey Motorsports Park had its first day in United States Bankruptcy Court Thursday, as a judge in Camden approved all seven of the park’s motions, including those asking permission to pay wages and its debt to the Millville Rescue Squad.
Judge Goria Burns’ approval of the NJMP’s “first day motions�? allows the race track to pay its workers, guarantee the presence of emergency medical technicians and perform other required actions to ensure the park can continue operating throughout the upcoming 2011 racing season. The judge also authorized the park to continue using its existing bank accounts, and prohibited utilities from altering or disconnecting service to the NJMP.
However, according to NJMP attorney Louis Lipsky, the decision was somewhat a formality. “NJMP officials decided to file Chapter 11 bankruptcy on the supposition that the motions would be approved,�? said Lipsky, speaking from his Philadelphia office. “It never entered the conversation that the motions would be rejected.�? Lipsky on Thursday also stated that at least two of the park’s largest creditors will be paid in full.
The NJMP owes the Millville Rescue Squad more than $520,000 in unpaid bills from last year. The Cumberland Empowerment Zone Corporation is owed $425,000 from a December 2009 loan. According to Lipsky, both will be paid in full. “It was confirmed that the Millville Rescue Squad will be paid in full, the City of Millville will be paid in full and the CCEZ will be 100 percent paid in full,�? said Lipsky. “All other parties will be treated according to the plan term sheet filed (with the bankruptcy documents submitted to the court on March 7).�? The City of Millville had issued a $600,000 loan to the park in the run-up to its summer 2009 opening.
Millville officials have state the NJMP has never missed a payment on that loan. Lipsky said that will continue, with monthly payments. The CEZC will also receive monthly payments. As for the Millville Rescue Squad, an agreement with the park dictates the NJMP must pay an installment of $200,000 today. Another $200,000 payment is due this summer. The balance will be paid over “a number of months,�? according to Lipsky.
“The racing season will start soon, and the business will operate as normal — nothing will change from the spectator’s perspective,�? added the attorney. “People will still be hired for the season, and no employees are going to be laid off.�?
NJMP officials will next meet with its creditors on March 24. A cash collateral hearing has been scheduled for April 12.
http://www.nj.com/cumberland/index.ssf/2...s_new.html