updated 4:50 p.m. ET Jan. 1, 2004

INDIANAPOLIS - The CART racing series could win court approval of its proposed sale to a group of team owners by Jan. 28 under a plan a bankruptcy judge approved Tuesday.

U.S. District Judge Frank J. Otte’s approval of CART’s proposed sales procedures came two weeks after the series filed for Chapter 11 bankruptcy protection as part of an agreement with the series’ buyers, Open Wheel Racing Series LLC.

Otte overruled objections to the sales procedures and scheduled Jan. 23 as the deadline for alternative bids for Indianapolis-based CART’s assets. If any such bids emerge, they could be considered during an auction Jan. 28. Without any qualifying bids, Otte could approve the sale to Open Wheel that day.

“This is another step in the process that will hopefully move us toward a successful 2004 season,” CART spokesman Eric Mauk said. “This is by no means the end of the road, but it does keep the process moving.”

CART and Open Wheel Racing agreed to sale terms before the bankruptcy filing in hopes of making a quick Chapter 11 exit in advance of the 2004 season.

Under the so-called “prepackaged” bankruptcy, Open Wheel will acquire all of CART’s assets — including equipment as well as sponsorship, team and promotion contracts — for $1.6 million in cash. But because the buyers will also assume some liabilities, including prize money owed to teams that took part in the 2003 season, the total purchase price is expected to be about $3 million.

Open Wheel’s principal owners — Gerald Forsythe, Kevin Kalkhoven and Paul Gentilozzi — told reporters Dec. 17 that they could quickly bring the series out of bankruptcy and run a 2004 season with at least 15 races and at least 18 cars.

The team owners want to put publicly traded CART under private ownership.

The current sale proposal replaces an earlier buyout agreement that Open Wheel backed out of earlier this month after too few teams committed for the 2004 season to meet the original purchase conditions.

CART in November announced a 19-race schedule for 2004, but has since postponed the season-opening Grand Prix of St. Petersburg.

In October, CART announced it lost nearly $78 million in the year’s first nine months, and warned that it would have to halt operations if the takeover was not completed. CART has been on a downward spiral, in part because of the creation of the rival Indy Racing League in 1996.

Open Wheel’s series would continue to be based in Indianapolis and operate under the Champ Car World Series banner, with the CART name being phased out.