bigbadbrother
10-18-2014, 05:07 AM
Jerry Bonkowski
According to Motor Racing Network’s Dave Moody, host of SiriusXM Speedway on SiriusXM NASCAR Radio, Rockingham (NC) Speedway has escaped the possibility of going into receivership for the time being.
Former ARCA champ Andy Hillenburg, who has tried to keep the legendary track operating, has received approval of a reorganization plan by a Richmond County (NC) Superior Court judge.
Hillenburg has a new unnamed group of partners and advisors that apparently stepped forward literally at the 11th hour.
“They are not racers,” Hillenburg told Moody. “They are businesspeople who know my reputation and work ethic, and see an opportunity to create new partnerships that will prove beneficial to all parties, allow Rockingham Speedway to survive and prosper as a racing facility and produce critical economic development opportunities in Richmond County.
“When word (of the receivership hearing) got out a week or so ago, people began offering to help.”
As a result, the track will not be placed into receivership by Farmers and Merchants Bank of Salisbury, N.C., which reportedly planned on placing the racetrack and surrounding property up for auction.
“We went in front of a judge recently and presented our proposal,” Hillenburg told Moody. “We explained that we need 90 days to perform the necessary due diligence, and he issued a Bridge Order to continue the case until today. Now, he has approved our request, and the speedway will remain in our hands.”
According to Moody, Hillenburg and his original partners purchased the racetrack in 2007 for $4 million. But court records showed the group owed Farmers & Merchants Bank nearly $4.533 million as of August 8, 2014.
The track and 244 acres of property are reportedly only worth $2.5 million now.
But Hillenburg and his new group aren’t completely out of the woods yet.
“Our request was for the proceedings to be delayed, in order to allow us to assemble a new financial plan,” Hillenburg told Moody. “We now have until Jan. 1, 2015 to finalize a workable financial plan with our new partners.
“Our goal is to return racing to The Rock, put the track on solid financial footing and continue to make a positive contribution to our community.”
According to Motor Racing Network’s Dave Moody, host of SiriusXM Speedway on SiriusXM NASCAR Radio, Rockingham (NC) Speedway has escaped the possibility of going into receivership for the time being.
Former ARCA champ Andy Hillenburg, who has tried to keep the legendary track operating, has received approval of a reorganization plan by a Richmond County (NC) Superior Court judge.
Hillenburg has a new unnamed group of partners and advisors that apparently stepped forward literally at the 11th hour.
“They are not racers,” Hillenburg told Moody. “They are businesspeople who know my reputation and work ethic, and see an opportunity to create new partnerships that will prove beneficial to all parties, allow Rockingham Speedway to survive and prosper as a racing facility and produce critical economic development opportunities in Richmond County.
“When word (of the receivership hearing) got out a week or so ago, people began offering to help.”
As a result, the track will not be placed into receivership by Farmers and Merchants Bank of Salisbury, N.C., which reportedly planned on placing the racetrack and surrounding property up for auction.
“We went in front of a judge recently and presented our proposal,” Hillenburg told Moody. “We explained that we need 90 days to perform the necessary due diligence, and he issued a Bridge Order to continue the case until today. Now, he has approved our request, and the speedway will remain in our hands.”
According to Moody, Hillenburg and his original partners purchased the racetrack in 2007 for $4 million. But court records showed the group owed Farmers & Merchants Bank nearly $4.533 million as of August 8, 2014.
The track and 244 acres of property are reportedly only worth $2.5 million now.
But Hillenburg and his new group aren’t completely out of the woods yet.
“Our request was for the proceedings to be delayed, in order to allow us to assemble a new financial plan,” Hillenburg told Moody. “We now have until Jan. 1, 2015 to finalize a workable financial plan with our new partners.
“Our goal is to return racing to The Rock, put the track on solid financial footing and continue to make a positive contribution to our community.”