Last summer’s ownership change at Iowa Speedway in Newton has sparked a still-escalating court battle between two Iowa families, with charges in each direction involving unpaid bills and contractual breaches. Jasper County court papers allege that Manaco Corp. and Manatt’s Inc., corporate arms of the family that built Newton’s racetrack, stiffed the new buyers for more than $1.8 million in unpaid bills when the speedway changed hands last June. The new owners, a corporation formed by members of the Clement family, say they in turn have been accused of defaulting on the deal because they held back on scheduled payments to the Manatt family because of the unpaid bills. Documents say the Manatts have threatened to file their own lawsuit against Conrad Clement, the founder of Featherlite Corp., a since-sold Cresco company that makes trailers, and three of his relatives if the Manatts aren ‘t paid in full within 10 days. The latest version of the lawsuit, a 64-page document filed this week by Des Moines attorney Scott Brennan, alleges that the Clements were stuck with nearly $1.85 million in unpaid bills after the speedway changed hands on June 30, 2011 despite a provision in the purchase contract that required the Manatts to pay any outstanding debts. To compensate, the new owners (who financed some of the $19 million purchase with loans from Manaco) paid only $152,588.37 as part of the scheduled payoff of a $2 million loan that was due Dec. 31. The lawsuit does not involve Rusty Wallace, who continues to own roughly 8% of the speedway.(more at the Des Moines Register)(2-11-2012)
