New Jersey Motorsports Park Files for Bankruptcy

03/08/2011 @ 3:49 pm, by Jensen Beeler12 COMMENTS

There aren’t a lot of arguments for keeping New Jersey as a state in our more perfect union, and perhaps the only compelling reason for some citizens is to keep the Garden State around so New Yorkers will have somewhere to dump their trash and third-tier reality shows. However one of the shining beacons of hope if you’ve gotten lost on the Pennsylvania Turnpike (and I mean horribly, horribly, horribly lost) is the New Jersey Motorsports Park (NJMP).

The Millville tracks are relatively new-comers to the area, and have provided entertainment to two & four-wheeled enthusiasts alike since their construction. While NJMP has been “under construction” in some form or another for as long as we can remember, the project has seemingly finally hit the end of its troubled waters, recently filing for Chapter 11 bankruptcy protection.

While certainly not a good sign for the track, NJMP does seem to have a reorganization plan in place, and has come to terms with its primary lender on its debt restructuring. “Although the decision to file Chapter 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,” said NJMP Owner and Managing Partner Lee Brahin.

“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.”

The bankruptcy proceeding will mostly be an office-side affair for the track, as staff reductions have already occurred, and further reductions won’t be necessary. Additionally, NJMP’s 2011 schedule for races and social events will remain unaffected by the bankruptcy filing and debt realignment.

NJMP also reports that the decreasing radius right-hand sweeper before the front straight on Thunderbolt will continue to give a track-riding blogger trouble, despite his best efforts.

Source: New Jersey Motorsports Park