Racing News: Steeleback dropped as TO GP sponsor

Toronto car race organizer yanks plug on brewery after viewing the extent of debts in protection filing Sputtering Steelback Breweries has spun out of the Grand Prix of Toronto. The Grand Prix Association of Toronto confirmed yesterday that insolvent Steelback won't be the title sponsor for next year's car race.
"Steelback will not be returning as our title sponsor," said association president Charlie Johnstone. Wasanda Enterprises, which has financed money-losing Steelback Breweries and related beverage producer D'Angelo Brands Ltd. since 2002, gained court protection from creditors for the two companies last month.
Court protection under the federal Companies' Creditors Arrangement Act negated all contracts with the two companies including the four-year sponsorship deal for the Grand Prix, according to Johnstone.
"We had been optimistic about them continuing until we saw the extent of their debts in published reports," Johnstone said. Steelback and D'Angelo Brands owe Wasanda more than $120 million in loans and interest.
Court filings show Steelback's spending on marketing and promotion far outpaced its beer revenue.
The brewery, which is a small player in the Canadian market, secured title sponsorship of the marquee summer event on Toronto's western waterfront for an undisclosed sum last March, replacing long-time sponsor Molson Breweries.
Sponsorship gave Steelback naming rights, extensive promotional opportunities and exclusive control of beer sales at the event and other accompanying festivities.
Johnstone stressed that even without Steelback, the event will proceed July 4-6. About six parties have expressed interest in becoming the event's title sponsor since Steelback's troubles emerged, Johnstone said. "There's a lot of interest out there," he said, without naming any of the inquiring companies.
Johnstone said Steelback has no debts with the Grand Prix. A creditors' list in Ontario court shows claims from numerous other sport-related entities, including the Toronto Argonauts football club, the Ottawa 67's junior hockey team and the Steelback Arena in Sault Ste. Marie.
courtesy of http://www.thestar.com/ , picture courtesy of me!