Cash-strapped CART releases '04 schedule

INDIANAPOLIS (AP) -- CART released its 2004 schedule Thursday, and warned it could run out of money next month before shareholders consider a buyout offer to keep the series going.

The Champ car series also disclosed in a Securities and Exchange Commission filing Thursday that it was in default on some of its financial obligations.

Indianapolis-based 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's 2004 schedule features 19 races in six countries, starting with a Feb. 22 race at St. Petersburg, Fla.

The schedule also includes the series' first-ever race in Seoul, South Korea. The date for that race, as well as four others, have not yet been set. The status of next year's race at Great Britain's Brands Hatch is undetermined as talks continue over track ownership rights, CART said.

Paul Tracy won his first championship in the 18-race season that ended in Australia on Oct. 26. A Nov. 2 race in Fontana, Calif., was canceled because of Southern California wildfires.

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 had been due Oct. 8.

The series 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.

CART's fortunes have declined as sponsors, drivers, teams and manufacturers have left the series amid declining television ratings.

CART became a publicly traded company in 1998, when its shares traded as high as $33. It has been on a downward spiral in recent years following the creation of the rival Indy Racing League in 1996.