The Grand Prix of Boston "filed for bankruptcy" yesterday following lawsuits after its "IndyCar race collapsed in April," according to a front-page piece by Mark Arsenault of the BOSTON GLOBE. The company is claiming $9M in liabilities, including $1.67M "owed to ticket holders who were never reimbursed" for the planned Labor Day weekend race. The remaining assets of the company total only $10,900 in cash and "two cars worth $50,000." The company also declared among its assets $586,000 in "fees it paid out and is trying to recoup." Grand Prix of Boston has been under investigation by Massachusetts Attorney General Maura Healey's office "over money still owed to people who have not been reimbursed for their tickets, some of which cost up to $205 each." The bankruptcy filing "lists about 90 pages of ticket buyers, most of whom had not been refunded." The amount of names totals "more than 4,000." The company has said that it "ran out of money after returning about $400,000 in refunds." Grand Prix of Boston has "repeatedly insisted it needs an influx of cash to complete the reimbursements" (BOSTON GLOBE, 7/6). In Boston, Battenfeld & Johnson note Grand Prix of Boston President & CEO John Casey paid himself $423,000 and a "consulting firm run by two former advisers to Mayor Martin J. Walsh pocketed" $123,000 from the IndyCar race "before it crashed and left ticket buyers out" nearly $2M. Former CEO Mark Perrone made $130,600 in "salary and consulting fees" while track designer Tony Cotman was paid $166,000. Meanwhile, IndyCar is demanding $4.2M from the company for "breaking its contract" to hold the race. The bankruptcy claim "raises new questions about whether the Grand Prix had the financial resources to hold the event, reporting it owes" a total of nearly $9M to a long list of creditors and ticket-holders. Among others looking for their "money back are sponsors who ponied up hundreds of thousands." They include Global Partners in Waltham which paid $245,000 for a sponsorship; Bridgestone Tires ($223,000); Herb Chambers ($100,000); New Balance ($50,000); and Seaport tech company LogMeIn ($390,000) (BOSTON HERALD, 7/6).
