Formula E creditors seek $34M from bankrupt organizers
Published Friday, February 23, 2018 9:52PM EST
Last Updated Saturday, February 24, 2018 8:52AM EST
There’s more bad news concerning Montreal's Formula E race.
Creditors insist they are owed $32.4 million, but the organizing body only has $4.7 million in assets.
After the Formula E race was cancelled under the new mayor’s administration, organizers ‘Montreal c'est electrique’ filed for bankruptcy.
The three main creditors, however, still need to be paid.
- Formula E Operations, the company that organizes the races all over the globe, who says it is owed $20.4 million.
- Evenko, in charge of the race in Montreal, who says it is owed $4.7 million.
- The City of Montreal, who says it is owed $7.3 million.
It will take about six months to determine if all the creditors’ claims are valid, at which point they will be paid accordingly.
The City of Montreal is the only one that applied to be a secured creditor, meaning it will be paid before anyone else.
Some of the costs are hard to nail down, explained court-appointed bankruptcy trustee Philippe Jordan of PricewaterhouseCoopers.
“The statement of claim is just to establish how much they’re owed. Having said that, you have to understand in these claims, there will be outstanding sums owed for damages for breach of contract. There may be a variety of claims made, but definitely if we're looking at $32 million, there won't be that kind of money to pay back.”
The Formula E organization has already said it plans to sue the City of Montreal, claiming a breach of contract due to the race being cancelled.
About 45,000 people attended the Formula E race, with about 30,000 were given out free.