Investment consortium Open Wheel Racing Series, entered in to a definitive agreement to buy CART earlier this month - but set a September 18 deadline to pull out should it discover a last-minute hitch.
Open Wheel's planned deal will see it acquire all outstanding CART stock at $0.56 per share. At close of trading yesterday, shares stood at $0.62.
After building in a September 18 opt-out clause, Open Wheel says it has decided 'not to excise this termination right' and will continue with plans to secure the ailing series.
Now the plans will go before shareholders at the end of November, early December, for approval.
With liquidation the only real option for CART, it is expected to be approved, although doubts continue to be raised about whether shareholders will embrace the proposal.
Says a statement from CART: "Under the agreement, CART's board retains the ability to pursue and accept a superior acquisition proposal.
"However, Open Wheel Racing Series is entitled to receive a termination fee of $350,000 if Championship accepts a superior proposal or if Open Wheel Racing Series terminates the agreement because CART's board withdraws or adversely modifies its recommendation of the transaction to CART's stockholders or takes action under its shareholder rights agreement to permit another person or entity to acquire 15 percent or more of CART's stock."
CART is being advised by Bear, Stearns & Co Inc, in connection with the transaction.
Open Wheel Racing Series is a newly formed holding company owned indirectly by a group of investors including Gerry Forsythe, Kevin Kalkhoven and Paul Gentilozzi.
Forsythe or entities owned or controlled by him currently have beneficial ownership of 3,377,400 shares of CART common stock, approximately 22.9 percent of the outstanding shares.
These shares will be contributed to Open Wheel Racing Series rather than acquired for cash. Open Wheel Racing Series has previously stated that, if the transaction is completed, it intends to continue to operate the business, including continuing to sanction the motorsports series.
