Team BooKoo Ceases Operation
We just received this note from Team BooKoo owner Michael Holigan:
On October 30th, Holigan Racing, LP received a termination notice from BooKoo Beverages, Inc. stating that BooKoo would, effective immediately, cease making their monthly sponsorship payments for the 2007 and 2008 racing seasons.
Holigan Racing filed for a Temporary Restraining Order to bar BooKoo from terminating the contract and to order them to make their November 1 payment. BooKoo took the position that the Court could not enjoin the termination because it had already taken place. Moreover, at the temporary injunction hearing on Friday the 10th, the current management of BooKoo testified that the new investors who took control of BooKoo in July had done a poor job in due diligence before investing in the company and that the company currently operates at a loss and cannot continue to make their sponsorship payments while still meeting their other financial obligations, including payroll. Holigan Racing was denied its request for a TRO this morning. Consequently, Team BooKoo will cease operations effective immediately.
“The worst part of this situation is that we learned the new investors in BooKoo have been planning to get out of the sponsorship contract since July. They waited until one month before the first round of the World Supercross Series to leave three athletes without a ride and also hurt nine additional team members,” states Michael Holigan.