RPM in default of multi-million dollar loan

[TeamBlueOval]

http://msn.foxsports.com/nascar/story/Report-RPM-in-default-on-major-loan

Not sure exactly what to make of this... the information is so vague that it's hard to tell.

[roosterrage]

Seems like there is always something going on there at RPM- personnel changes, this news, etc.

[yatesracing]

And you wonder why Kahne is confused????????? No stability. Bet if he could leave now he would. I really don't know whether I care or not. Never was a Kahne Fan but I guess that could change if he would put FORD in the Victory Lane. LOL

[TeamBlueOval]

He has had pretty good cars this year, but no luck. I'm still hoping he will hang around...

[DeeDee]

UPDATE: Richard Petty Motorsports agreed Monday night to a deal that would restructure the debt of the company, a source close to the situation told ESPN.com on Tuesday. According to the source, the deal is subject to final signatures and that 10 of the 11 banks involved in the restructuring have agreed to terms. This comes on the heels of a report that RPM, owned by George Gillett, has been in default on a loan of about $90 million since February. The source said the loan is closer to $70 million and that it was allowed to lapse with the hope that it would provide leverage with the banks to restructure. Had the banks opted to foreclose on the loan they could have taken possession of team assets and some revenue from sponsors, but none of Gillett's personal assets. Gillett would not comment on specifics of the deal but said RPM has no plans of going under. "I don't think we'll just survive, we'll thrive," Gillett said. Gillett said RPM is operating in the black and making a profit. He said debt incurred over the past few years is the result of trying to survive in a tough economy that saw RPM lose financial support from Chrysler, forcing the move to Ford, and sponsors. "When you look at some of the curveballs thrown at us they're substantial," Gillett said. "Yet we've overcome them. We've overcome the loss of all that revenue from sponsors and Chrysler. Based on everything I know our intention is to restructure the debt, enter into an agreement with banks and buy out the debt with new capital that our family would put into and end up with a company that may end up a few million in debt but end up with a company that is fundamentally debt-free," he said.(ESPN)(4-14-2010)~jayski