New Jersey Motor Sports, LLC, operator of New Jersey Motorsports Park announced Tuesday that it has proposed a definite plan to emerge from bankruptcy, following a court hearing scheduled for July 14 in Camden, N.J., at which it anticipates the plan to be confirmed by the U.S. Bankruptcy Court. NJMP filed Ch. 11 bankruptcy on March 7, with an agreement with its secured lender, Merrill Lynch Mortgage Capital, Inc.
Under the terms of the proposed arrangement, Merrill Lynch is reducing its secured debt from $30.4 to $20 million, and will act as co-sponsor of the plan, along with NEI Motorsports, LLC, which will pay $2,000,000 to fund certain obligations pursuant to the plan. In the event this $22,500,000 transaction is determined to be the highest and best, NEI will be a majority owner of NJMP upon bankruptcy emergence and Merrill Lynch will hold a minority interest, along with its $20,000,000 restructured secured loan. NEI's shareholders include some of NJMP's shareholders.
As with all transactions that seek a bankruptcy court's approval, NEI's and Merrill Lynch's proposal is subject to higher and better cash offers with a minimum of $23 million. As such, Brownstein Corporation, NJMP's court-approved Financial Advisor, will be sending out solicitations via e-mail and mail to determine whether there might be potentially interested parties with better terms than the bid that NEI and Merrill Lynch are offering.
The NEI/Merrill Lynch plan will not affect the longstanding and valuable relationships NJMP has established with its members, patrons and sponsors, nor will there be any material changes in the company's operations, including its scheduled events, the Drivers Club, Shade Tree Garages, Breighton Villas, hospitality suites, sponsorships, or other aspects of its operations.