If I am correct from my reading of the contract, upon approval of the deal, the company will then file the chapter 11 petition. The contract itself will not close, untill the Bankruptcy Court approves it. There is a proposed order that will be attached to the petition, where the contract proposal will be sketched out. Creditors (as well as a shareholder committee)will be able to set out their objections to it.

However the assets in question, are mostly the promotion contracts. Most of the major liabilities of CART, as well as enforcement rights are attached to those contracts, including the ISC claims.

So essentially, the bankruptcy court would get 2 million in cash, combined with whatever cash is left over from the operational side of CART. That would be left over to be distributed to the stockholders.