Indy promoter bankruptcy hurts local businesses
Ambulance company gets $8,000 of $56,000 owed by Octane Motorsports Events
Businesses that provided goods and services to the Edmonton Indy have learned how little money they’re getting following the bankruptcy of promoter Octane Motorsports Events.
Alberta Paramedics Services was owed $56,000 for providing ambulances for the 2012 version of the race.
The receiver handling the bankruptcy recently told the company that it will only get $8,000.
“We didn’t know this was coming,” said general manager Tim Hawirko. “Totally blindsided by it.”
Hawirko’s company provided services for the 2011 Indy, which was run by Octane, as well as earlier versions of the race that were handled by Northlands.
Hawirko said the shortfall has hurt the business.
“Our employees for the past year never got a raise,” he said. “Some of our management staff actually took a rollback in wages just for us to survive this.”
Octane owes more than $5 million to dozens of businesses around Edmonton, including restaurants, hotels and fuel companies.
Octane did not respond to calls and emails from CBC News but Hawirko has heard from them.
“I got an email from the general manager of Octane saying, no matter what’s happening let's be friends. And I can't repeat what I said to him.”