ZR
06-01-2017, 02:29 AM
The renowned driving school named after retired race car driver John “Skip” Barber has filed for Chapter 11 bankruptcy protection in order to restructure its finances, the organization announced on its website. Skip Barber Racing School (http://www.motortrend.com/news/skip-barber-racing-school-to-offer-new-closedwheel-program-469/) hopes to attract a buyer who will invest in the 42-year-old institution’s future.
According to a statement posted on Skip Barber’s website, the school has been hampered by its debt structure. By filing for Chapter 11, the company believes it can settle with its debt holders and vendors, which include the race tracks where it operates its schools. Once its debts are settled, the business will be put up for sale. Earlier attempts to attract investors were foiled by its negative balance sheet, the company wrote in the statement. As a result, Skip Barber didn’t couldn’t get funding to improve its equipment or grow its class offerings. The school still uses NC-generation Mazda (http://www.motortrend.com/cars/mazda/) MX-5 Miatas, RX-8s, and previous-generation Mazda3s, along with its own Formula Skip Barber open-wheel cars. Skip Barber believes whoever buys the school will have a cleaner balance sheet and thus be able to access new capital.
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Until a buyer comes around, the school will continue operating as a debtor-in-possession. That means it will be business as usual at its five locations, which include Lime Rock Park in Connecticut, Road Atlanta in Georgia, Road America in Wisconsin, Sebring International Raceway in Florida, and Mazda Raceway Laguna Seca in California. The company says that employee pay will not be affected, and that all customer deposits will be honored. The Skip Barber racing series will continue running as scheduled.
According to a statement posted on Skip Barber’s website, the school has been hampered by its debt structure. By filing for Chapter 11, the company believes it can settle with its debt holders and vendors, which include the race tracks where it operates its schools. Once its debts are settled, the business will be put up for sale. Earlier attempts to attract investors were foiled by its negative balance sheet, the company wrote in the statement. As a result, Skip Barber didn’t couldn’t get funding to improve its equipment or grow its class offerings. The school still uses NC-generation Mazda (http://www.motortrend.com/cars/mazda/) MX-5 Miatas, RX-8s, and previous-generation Mazda3s, along with its own Formula Skip Barber open-wheel cars. Skip Barber believes whoever buys the school will have a cleaner balance sheet and thus be able to access new capital.
http://st.motortrend.com/uploads/sites/5/2007/09/112_0709_22z-skip_barber_racing-mazda_mx5.jpg?interpolation=lanczos-none&fit=around%7C660%3A413
17 PHOTOS (http://www.motortrend.com/news/skip-barber-racing-school-files-chapter-11/#)
http://video.unrulymedia.com/native/in-art-countdown-icon-128x128x3s.gif?d=1496298491291563889.0531003382
http://video.unrulymedia.com/native/opt-out-icon2.png
Until a buyer comes around, the school will continue operating as a debtor-in-possession. That means it will be business as usual at its five locations, which include Lime Rock Park in Connecticut, Road Atlanta in Georgia, Road America in Wisconsin, Sebring International Raceway in Florida, and Mazda Raceway Laguna Seca in California. The company says that employee pay will not be affected, and that all customer deposits will be honored. The Skip Barber racing series will continue running as scheduled.