Michael Johnson embroiled in bankruptcy chaos with debts of up to £37m | Other | Sport

Michael Johnson’s Grand Slam Track (GTR) event has filed for bankruptcy after failing to agree a compensation deal with creditors, who are still owed millions. The Times reported lenders rejected an offer that would have seen them recoup 50% of the amount owed in invoices submitted through to October.

GTR has come under increasing pressure amid claims the athletics league has paid athletes only half their fees.  A statement issued on Thursday said GST had filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the US Bankruptcy Court for the District of Delaware. The last stage of this year’s event in Los Angeles was cancelled as the competition is embroiled in controversy.

While certain athletes had only received a portion of their winnings and appearances fees, other suppliers have reportedly been left out in the cold altogether. The bankruptcy filing suggests GST has up to $50,000 (£37,000) in assets and between $10,000,001 (£7.5m) and $50million (£37m) in liabilities.

Those debts stem from amounts owed to ‘between 200 and 999 creditors.’ Johnson, 58, signed the filing in conjunction with GST president Steve Gera and attorney J Rudy Freeman.

Johnson, who returned one of his Olympic gold medals, released a statement on Thursday, which read: “While GST has faced significant challenges that have caused frustrations for many — myself included — I refuse to give up on the mission of Grand Slam Track and the future we are building together.”

A separate statement from GTR also hinted at its intention to forge a future in competition, adding: “The bankruptcy process will allow us to address outstanding liabilities in an orderly and transparent manner and strengthen our financial condition, positioning us to move forward with stability and the ability to pursue success and growth in the future.”

GTR was billed as a failure after athletes were seen competing in front of largely empty stands, indicating a lack of interest. Despite Olympic and world champions of their respective fields competing, the inaugural event in Jamaica was considered a bust.

Significant prize purses of up to $100,000 (£75,000) were advertised for event winners. Salaries were also on offer for those athletes contracted by GTR, though it appears those competitors now face a battle to receive their share.