Boston Grand Prix is filing for bankruptcy
The group still owes ticket holders and others millions of dollars over the canceled Seaport IndyCar race.
Boston Grand Prix, the local organizing entity of the since-canceled Seaport IndyCar race, is filing for bankruptcy.
As first reported Tuesday evening by WCVB, the news comes amid the legal and financial mess resulting from the millions of dollars the group owes race ticket buyers and stakeholders.
“While BGP has taken this action because it has no other choice, it is still an action that is taken with deep regret,” Boston Grand Prix said in a statement.
As of Tuesday evening, the organization’s website, in addition to their social media accounts, appears to have been deleted.
According to Fox 25, Boston Grand Prix said in its bankruptcy filing that it has less than $50,000 in assets, while listing liabilities of more than $1 million and between 1,000 and 5,000 creditors.
Massachusetts Attorney General Maura Healey recently threatened and moved toward legal action against Boston Grand Prix in an effort to recoup ticket holders’ money.
In a statement Tuesday, Cyndi Roy Gonzalez, a spokeswoman for Healey, said the group’s bankruptcy “does nothing to prevent us from our continued efforts to find out where the money ticket holders spent has gone and to aggressively pursue a refund for those consumers.”
“We will continue to seek information from all parties involved and take whatever action is necessary to get the money back for those who purchased tickets,” Gonzalez said.
In their statement Tuesday, Boston Grand Prix said it had “become clear that a full refund will not be possible without the cooperation of third parties including IndyCar and others who have been unwilling to participate.”
In response to a June 27 deadline set by Healey, Boston Grand Prix officials said they had been “in discussions with investors, sponsors and other stakeholders” in the hopes they would be willing to contribute to a fund to pay back those who bought tickets, which went on sale in March, for the race, which was canceled in April amid discord with city officials.
Race organizers were able to reimburse $400,000 in ticket sales following the race’s cancellation, but ran out of money after that. As WCVB reported Tuesday, Boston Grand Prix is still estimated to owe $1.7 million in refunds.
Boston Grand Prix is already being sued by the national IndyCar organization, as well as a growing group of sponsors and contractors that invested time and money into the botched event.
Boston Grand Prix said Tuesday they hoped the bankruptcy filing would “provide a forum for an orderly disposition and administration of claims to provide as full a return as possible to the ticket holders and all other impacted parties.”
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