* Defaults on guaranteed royalty payments
* Says exploring strategies to turn business around
* Says could ultimately pursue bankruptcy
Oct 7 Motorsports Authentics, an equally owned
merchandise joint venture between race-track owners
International Speedway Corp (ISCA.O) and Speedway Motorsports
(TRK.N), has received default notices from certain licensors,
regulatory filings show.
In a filing with the U.S. Securities and Exchange
Commission, Speedway Motorsports said Motorsports Authentics
had stopped paying certain guaranteed royalties in its third
quarter, and was attempting to renegotiate agreements with all
significant licensors of NASCAR merchandising.
"MA is exploring other business strategies to turn its
business around. If such efforts are not sufficient or timely,
MA could ultimately pursue bankruptcy," the filing said.
The joint venture, which produces and markets licensed
motorsports products, also received a going concern
qualification from Grant Thornton LLP in January, the filing
In its second quarter, International Speedway took a
non-cash impairment charge of $1.17 per share for loss on its
equity investment in Motorsports Authentics.
Shares of Speedway Motorsports closed at $14.38 on the New
York Stock Exchange, while those of International Speedway
closed at $27.74 Friday on Nasdaq.
(Reporting by Santosh Nadgir in Bangalore; Editing by Maju