Speedvegas could face involuntary bankruptcy
A petition has been filed in U.S. Bankruptcy Court in Delaware that could force Speedvegas, a driving experience south of Las Vegas, into bankruptcy.
A rare involuntary petition for bankruptcy protection was filed Saturday and amended Monday listing six petitioners seeking at least $5,259 each.
Tofileaninvoluntarypetition,at least three creditors must seek payment totaling a minimum $15,775. In the Speedvegas petition, creditors are seeking at least $15,777.
Speedvegas was the scene of a
Feb. 12 car accident that killed a Canadian tourist driving a Lamborghini and a driving instructor who was in the car’s passenger seat.
Aninvestigationbythenevada Office of Safety and Health found that Speedvegas had a substandard fire and safety plan and failed to properly train employees in fire suppression, although the agency ruledthatwasn’tacontributing factor in the accident. The agency, which reviewed the crash as a workplace accident, recommended fines totaling $16,000 on three citations involving seven violations. Speedvegas has until Thursday to contest the citations and fines.
In June, the estate of Gil Ben-kely, the driving instructor who died in the accident, filed a lawsuit against the track, its owner, its designer and the car manufacturer.
Among the creditors in the bankruptcy action are Phil Fiore of Bridgewater, Conn., a previous owner of the Lamborghini Aventador that was destroyed in the crash; Sloan-speed LLC, the real estate company managed by Las Vegans Scott Gragson and Dennis Troesh that owns the land where the track sits; and T-VV LLC, a subsidiary of the Tiberti organization that operatesconstructionanddevelopment companies in Southern Nevada, managed by Reynaldo Tiberti.
The initial filing Saturday included Speedvegas CEO Aaron Fessler, but his name was removed in an amended filing Monday.
SPEEDVEGAS
The action was filed by the Wilmington, Delaware, office of Drinker, Biddle & Reath, a Philadelphia-based law firm with more than 600 attorneys.
In an involuntary filing, the named company has 20 days to respond to a petition.
According to Nolo, an internet legal website that addresses consumer and small-business questions about the law, if a debtor does not respond to a petition, the court will allow the bankruptcy, and the debtor has no choice but to participate.
If a debtor does respond, a hearing would be set.
If the judge decides based on the evidence that the petition was filed in good faith and that the debtor is not paying the debts, the judge would order the bankruptcy to go forward.
A statement released by Speedvegas Monday afternoon did not address the filing or whether the company plans to respond to the petition.
“Speedvegas continues to see rapid growth since entering the marketplace last year and continues to operate as usual, providing guests with world-class driving experiences,” chief operating officer Johnny Mcmahon said in an emailed statement.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702477-3893. Follow @Rickvelotta on Twitter.