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≡ GRAND SLAM TRACK ≡
Ahead of Thursday’s hearing at the U.S. Bankruptcy Court in Delaware, a new filing by Grand Slam Track explains its plan to go forward if its plan is approved to liquidate its existing debt.
The key language is this:
“The Reorganized Debtor intends to re-launch the ‘Grand Slam Track’ concept under a new, updated business model where professional track athletes can compete in a defined series of competitions. The competitions will seek to expand on the most promising aspects of the ‘Grand Slam Track’ concept, including advance commitments from participating athletes, more predictable scheduling and clearer presentation to broadcasters, sponsors, and audiences, in a league that will operate alongside existing international and domestic track competitions.
“Upon the Effective Date of the Plan, the Reorganized Debtor will obtain funding from Winners Alliance in order to ensure that the Reorganized Debtor has sufficient funds to conduct a comprehensive effort to attract investments to implement the Reorganized Debtor’s goforward business plan. Such funding from Winners Alliance will allow the Reorganized Debtor to maintain basic business operations and engage in extensive fundraising efforts through at least December 31, 2026.
“The Debtor believes that such a timeline will provide sufficient time for the Reorganized Debtor to be able to obtain sufficient investments to be able to implement its long-term business plan. The Debtor estimates that the total cost of maintaining basic business operations and conducting a fundraising process will be in the $1.4 million range but the Debtor continues to evaluate such cost estimates and reserves the right to modify such estimates.
“The Reorganized Debtor’s long-term go-forward business plan involves raising sufficient funds to host at least one event in 2027, provided, however, that to the extent the Reorganized Debtor is unable to raise sufficient funds to host at least one event in 2027 and to implement its go-forward longer term business plan successfully, the Reorganized Debtor will wind down its business affairs and discontinue operations.”
The new “Grand Slam Track” would retain Michael Johnson as founder and chief executive and Stephen Gera as President.
The filing included letters of support from three athletes: sprint stars Kenny Bednarek and Melissa Jefferson-Wooden – both of whom were big winners in the three meets held – and hurdler Freddie Crittenden. The letters are essentially the same in format and language and were signed electronically.
The proposed reorganization plan classifies creditors into three broad classes:
● Winners Alliance, an arm of the Professional Tennis Players Association, which has $5.0 million in secured debt.
● Athlete claims of $7.0 million, to whom the plan would pay 85%; there are 184 athletes listed as claimants in this class.
● “General Unsecured Claims” of $12.9 million, who would get just 1.5% of their claims paid.
There are also some small claimants who would receive 85-100% of their claims, with the combined totals about $131,300.
A vote on the plan is being challenged by the Official Committee of Unsecured Creditors, which seeks to file a lawsuit to essentially claim that Winners Alliance is the de facto controller and owner of Grand Slam Track and is responsible for all of the debt to all parties and must pay damages in addition.
If approved, a vote on the plan would be taken in April. A hearing is underway today in Delaware.
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