Arizona race track facing lawsuit from trustee following bankruptcy filing
The Yavapai Downs horse racetrack in Pescott, Arizona, filed for protection under Chapter 7 bankruptcy law in July but is already running into further complications.
The Yavapai Downs horse racetrack in Pescott, Arizona, filed for protection under Chapter 7 bankruptcy law in July but is already running into further complications.
According to The Daily Courier, Brian Mullen, the trustee appointed to oversee the race track's bankruptcy case, has filed a lawsuit against the board of directors and a select number of former employees on the grounds of breach of fiduciary duty and negligence.
According to the newspaper, the defendants listed in the lawsuit are: Gary Spiker, former general manager of the track; Sharon Fischer, former finance director; Yavapai County Farm & Agriculture Association board members Rod Cordes, Jeff Wasowicz and Kevin Keighron; and former board members Phil Bybee, Laurie Boaz and Charles Krause.
"Failing to properly oversee day-to-day operations of debtor" and "failing to implement reasonable and necessary financial controls" among other accusations were featured in the lawsuit. Alex Vakula, the association's attorney, told the newspaper he suspects the trustee is trying to take advantage of the board's insurance policy before it expires.
The racetrack filed for Chapter 7 bankruptcy with $24 million in listed assets and $15.4 million in liabilities, according to an August 3 article in The Daily Courier. The Yavapai County Assessor's Office estimated the value of the race track's facilities at $20 million last year but adopted a new method for calculation and lowered the value to $5.4 million this year.
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