The Board of Directors of the Grand Prix de Valcourt announced recently filing for bankruptcy and the cancellation of the February 2010 Grand Prix Ski-Doo de Valcourt, according to a Grand Prix de Valcourt press release.

The Board of Directors said they were obligated to file for bankruptcy, largely because the organization has been the victim of an alleged fraud unveiled in the spring and made public on June 6 of this year.

The fraud was estimated to be a few hundred thousand dollars. Compounded to this sum is an additional $230,000 loan from a financial institution and near $270,000 in debt to 70 suppliers from Eastern Townships.

A criminal investigation by the Québec Provincial Police and a civil action suit has been done to assess the nature of the fraud.

After analysis of their financial status, the Board of Directors adopted a resolution to put the organization in receivership.

The dissolution of Grand Prix de Valcourt was, also, announced. This has suspended the presentation of the Grand Prix Ski-Doo de Valcourt for at least February 2010.

BRP Inc., manufacturer of Ski-Doo, issued a non-refundable $100,000 grant for the town of Valcourt to offset the financial results from the Board of Directors decision.

"This contribution must be seen as a gesture of solidarity with the Eastern Townships region and must be allowed firstly, to the liquidation of the organization and secondly, to a partial relieve of the financial burden currently supported by all suppliers," said a representative of the Grand Prix de Valcourt.