DC Solar Distribution Inc.’s bankruptcy and implication in a $1 billion Ponzi scheme shouldn’t take International Speedway Corp. off the hook for $46 million in payments for renting solar generators, a leasing corporation told a Florida federal court Thursday.
SunTrust Equipment Finance & Leasing Corp. told the court Thursday not to dismiss its suit against International Speedway, saying the agreement between the three companies had a clause that requires the track owner to pay for the generators come "hell or high water."
While International Speedway had argued that both it and SunTrust were victims of DC Solar’s fraud and that SunTrust should take up its claims with DC Solar, SunTrust told the court that a secret, side agreement between International Speedway and DC Solar constituted a breach of their three-way contract long before the now-bankrupt DC Solar’s scheme was revealed and federal prosecutors filed charges.
The agreement’s "hell or high water" provision states in a bold, capitalized font that the sublease is "noncancellable" and that International Speedway’s obligation is "absolute and unconditional in all events," according to Thursday’s filing.
— Law 360 —
H/T: Sports Business Journal’s Adam Stern
– ISC says it and SunTrust "were victims of DC Solar?s fraud and that SunTrust should take up its claims with DC Solar."
— Adam Stern (@A_S12) November 25, 2019