Report: Childress files legal papers over non-payment by GM-UPDATE
7 Comments Quote selected text Published June 22nd, 2009 in NASCAR News
UPDATE:
The following is a statement from Richard Childress, president and CEO of Richard Childress Racing regarding allegations that RCR has filed a lawsuit against General Motors:
“I would like to set the record straight that RCR has NOT filed a lawsuit against General Motors and I do not appreciate anyone suggesting otherwise. As is standard practice in bankruptcy proceedings, RCR has made a filing which is common among creditors in these situations. As previously stated as recently as this past weekend in Sonoma, RCR is proud to be associated with General Motors and we are working closely with them during these difficult economic times.”
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Richard Childress, through the Winston-Salem law firm Womble, Carlyle, has filed legal papers over what he says is GM’s non-payment of a bill of $2,538,750. Childress insists he’s not suing GM over its failure to make that payment due June 15th.
That bill would apparently be a scheduled quarterly payment, part of a $10 million a year Chevrolet sponsorship for Childress’ four-team operation.
good luck getting that money Richard.
Yeah. With the federal govt. taking part control of GM and they have already shown breaking contracts doesnt seem to bother them, so I hope you have deep legal pockets Richard.
Justin 99 wrote:
When a company files for Chapter 11 all contracts essentially become null and void.
Right, but when they file for chapter 11, if Childress is a secured creditor, he SHOULD be due his money before unsecured creditors like the UAW or whoever.
I say good luck getting your money because O will strongarm and shame them into giving up their rights as secured creditors like he did with all those “greedy” banks (speculators, in his words) so his UAW cronies can get paid while people’s 401(k)s tank just a little more!
Jeff wrote:
You said exactly what I was was trying to say. The Obama govt. has bypassed many rules and/or laws in the banking and auto take overs. 1 example ( following Jeff’s example ) is that Cerberus bought out Daihmler’s part of Chrysler for $7.4 billion. Which I would contend means in a bankruptcy that should entitle them to a big chunk of the assets. But no! The govt made sure the UAW got the bigger chunk, ( citing union contracts ) and pretty much told Cerberus to go kick rocks. Everyone I’ve seen on TV, said that would never have happened in a typical corperate chapter 11, but the Govt. is making the rules as it goes and noone is able to stop them. So the unions, (can you say BIG campaign contributions?) are being looked after by the Obama administration bigtime.
They also say alot of the banks that were NOT in bad financial shape were forced to take govt. bailout money, which made them under this same rules as the banks on verge of failure. The managers of these banks say that govt. officials threatened to audit and fine them right out of business if they didnt cooperate. Doesnt this sound more like corrupt Chicago politics than the transparent govt. of love that was promised during the campaign?
I just know that since we have a new president, ya hafta get a co-signer for everything! (lol)
gigolo george wrote:
Very True!