The filing in U.S. District Court in Indianapolis, dated Wednesday, states that Champ Car has spent tens of millions of dollars in the past four years to maintain the series and that its takeover by the IRL is in the best interest of the sport.The bankruptcy filing will not affect the IRL deal, said Jeff Hokanson, a lawyer representing Champ Car.
The Champ Car owners intend to stay in business long enough to run their Toyota Grand Prix of Long Beach on April 20. Then they plan to liquidate or sell their assets to pay debts.
The bankruptcy filing indicates debts of up to $10 million, but Hokanson said he expected known claims to amount to $5 million or less.
"Subject to what additional claims may come in, we expect that creditors will be paid in full or close to it," he said.
Champ Car's largest creditor is the engine-maker Cosworth Inc., which is owed $1.8 million.
The league was formed in 2004 after team owners Kevin Kalkhoven, Paul Gentilozzi and Gerald Forsythe bought the assets of Championship Auto Racing Teams after it had filed bankruptcy.
But Champ Car's leaders decided "that it is no longer economically feasible to sustain an open-wheel series and that (Champ Car) did not have the funds to operate the series in 2008," said an affidavit from Gene Cottingham, vice president and chief financial officer of the series.
Champ Car said the IRL was paying $6 million for its intangible assets, such as trademarks and historical documents, and its traveling medical center.
A meeting of creditors is scheduled for April 21, the day after Champ Car's final race.
