Newton Independent
Iowa Speedway officials released the following statement in regard to the ownership position of Rusty Wallace in regard to the Newton racetrack:
"NASCAR Hall of Famer Rusty Wallace has not sold his interest in Iowa Speedway, according to Stan Clement, President of the Newton track.
"Naturally when a corporation is sold, and stock is transferred to the new owners, all outstanding stock must be redeemed and reissued," Clement said. "Rusty's ownership interest in Iowa Speedway remains the same as it was from the very beginning back in 2005.
"Wallace was surprised at the initial news report, and was quick to respond.
"Of course I never sold my shares in Iowa Speedway," Wallace said. "I am, and always have been, an owner."
"Prior to the June 30, 2011 sale, Wallace owned approximately 8 percent of the shares of U.S. MotorSport Corporation (USMS), which owned and operated the Speedway. As a result of the June 30, 2011 sale, USMC Corp. (USMC) became the sole shareholder of USMS, and in connection with the transaction, Wallace exchanged his shares in USMS for shares in USMC."
On Tuesday, in denying partial motions for summary judgement by both parties in the ongoing legal dispute over the sale of the track, District Court Judge Randy Hefner recited the "Background Facts" as such:
"Although the parties disagree as to the proper interpretation and construction of the various documents, the background facts are generally not in dispute.
"USMC, USMS, Manaco and Manatt's are all Iowa Corporations. Manaco is 'an affiliate of Manatt's.' USMS owns and operates the Iowa Speedway in Newton. Prior to June 2011, Manaco owned 91.5 percent of the issued and outstanding shares of common stock in USMS. The remaining common stock was owned by Rusty Wallace.
"In June 2011, USMC and Manaco entered into a written 'Purchase Agreement' which resulted in the sale to USMC of Manaco's USMS stock and certain notes receivable from USMS. This transaction closed on June 30, 2011. About this same time, USMC also acquired Wallace's USMS stock and USMC is thus now the sole shareholder of USMS1. USMC immediately assumed control of USMS and the Speedway2.
"1 See Exhibit F to Conrad Clement 2nd Affidavit. (This record includes two affidavits signed by Conrad Clement. One was signed on Sept. 19, 2012 and was submitted in support of USMC's motion for partial summary judgment and the Guarantors' resistance to Manaco's motion addressing the claims against the Guarantors. The other Conrad Clement affidavit was signed on Nov. 1, 2012 and was filed in support USMC's resistance to Manaco's motion and its own motion addressing the Jefferies' consent issue. The affidavits will be referred to in the order they were signed.)
"2 Defendants' MSJ App., Exh. 4."
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