Boston Grand Prix Declares Bankruptcy, Still Owes $1.67 Million to Ticketholders
Boston Grand Prix’s slow-motion crash and burn continued this week, as the local company aimed at bringing an IndyCar race to the Seaport declared bankruptcy, with $9 million in liabilities, including $1.67 million still owed to ticketholders.
Boston Grand Prix’s only assets are just $10,900 in cash and two cars worth $50,000, as well as $586,000 in fees paid out to the Massachusetts Convention Center Authority and IndyCar, according to bankruptcy filings obtained by the Globe. The Labor Day road race folded in April amidst tepid support and in-fighting between Mayor Marty Walsh’s administration and promotors.
“The relations between BGP and the city and state has deteriorated to the point where I feel we cannot run a successful race,” chief executive John Casey said in an email to investors at the time.
Attorney General Maura Healey has turned her attention to the suit-swamped company in recent weeks, as people have yet to be reimbursed for their tickets, which cost up to $205 each. BGP’s bankruptcy filing includes 90 pages of ticket buyers, many of whom have not been refunded.
“Boston Grand Prix’s bankruptcy filing today 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,” Healey’s office said in a statement. “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.”
Boston Grand Prix said it ran out of money after handing out $400,000 in refunds, and will require an injection of cash from third parties in order to repay its debts.
“Based on the numbers, unfortunately, it looks like ticket buyers will have a hard time getting their money back,” bankruptcy lawyer Mark Powers told the Globe Tuesday.