Posted by Brian Lohnes
Not sure how we missed this, but on Monday, the same day that the track announced they would be cancelling the entire 2012 season, Irwindale Speedway filed for Chapter 7 bankruptcy. Chapter 11 Bankruptcy is what you file when you intend on reorganizing the business to get yourself out of a hole. Chapter 7 bankruptcy is what you file when you intend on selling assets off and ceasing business operations. It would seem that the cancellation of the 2012 season was done to allow for this filing rather than continuing to operate and reorganize under a Chapter 11 filing.
By doing this, some more details of the track’s operations and structure were revealed. According to a report on ESPN.com, the track is in the hole more than $300,000 to various parties. They owe $55,000 in rent money to the company that actually owns the land the track is built on, Nu-Way Industries Inc.. We believe that Nu-Way is a large metal fabrication company based out of Des Plains, Illinois.
Believe it or not, the largest debts that the track has are for personal injury claims. One of the claims is for $150,000 and there are two more with values not currently known. We do not know if these claims were filed by employees injured on the job, spectators who were injured at events or what. BangShift is actively investigating this and we will try to dig up the source of those claims. Other bills are more mundane. There is money owed for water service, the police (for security details we assume), and to a local newspaper for advertising costs.
According to the ESPN report, the entirety of the property is valued at $31-million dollars. This number came from public documents that county officials provided.
The only thing that is on-going at the track is LA Racing, a driving school that is not directly affiliated with the race track itself. They have apparently been told that business can remain as normal at the track, although the owner of the company believes that he will be paying Nu-Way now instead of Irwindale Speedway LLC.
To us, that is the only glimmer of hope in this whole mess. If the track were going to be squashed and turned into a mini-mall or something, they would have just locked the gate and told everyone, even the driving school, to vacate and be done with it. Nu-Way still owns the property, Irwindale Speedway LLC is the entity that went boobs up, and hopefully there is another group of management/interested parties who want to take the reins and get the place opened back up again.
My days with racing cars are done .loved it just moved on to other things -like boating .
BUT if I was still racing I guess the streets would be where it happening ..
Saturday nights on a deserted road just like the old days.
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