
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, April 16, 1991                   TAG: 9104160019
SECTION: SPORTS                    PAGE: B5   EDITION: METRO 
SOURCE: RAY COX SPORTSWRITER
DATELINE:                                 LENGTH: Short

SPEEDWAY WILL FILE CHAPTER 11

After negotiating all winter to restructure Pulaski County Speedway's debt, officials at the four-year-old track said Monday they have decided to seek the protection of Chapter 11 bankruptcy.

"I hate this like hell, I really do," speedway promoter Steve McMurray said. "The stigma of doing this is going to be tough on us. But to keep the speedway operational and all the checks good, then we're more or less forced to do it."

Racing will continue as scheduled at the 4-year-old track. Drivers and track employees will be be paid, McMurray said.

Bruce Stockburger, lawyer for the speedway, said he is preparing papers to reorganize the Pulaski County company and he will file them in U.S. Bankruptcy Court in Roanoke as soon as possible. Under reorganization, the speedway will submit to the court a plan for payment of creditors.

After an encouraging opening-night crowd of between 6,000 and 7,000 two weeks ago, racing was rained out this past weekend.

The speedway has been negotiating with the First National Bank of Christiansburg, the first lienholder, and the National Bank of Blacksburg.

"We have a big debt load and we're trying to get that restructured," McMurray said. "I think we can do that. The main thing is to stay operational and to get my people and the drivers paid."

McMurray said current problems in the banking industry contributed to the speedway's troubles.

"These federal bank examiners have been tough on the banks," he said. "They have forced a bank that we have dealt with for years to be tougher on us than they ever have."

Keywords:
AUTO RACING

by CNB