Court appoints receiver for SIST subsidiary track

Shawano Leader/June 2, 2010

A receiver has been appointed to take control of the racetrack property owned by a subsidiary of the Samanta Roy Institute of Science and Technology, Inc.

Shawano County Circuit Court Judge James Habeck Friday granted a motion for an emergency appointment of a receiver in the foreclosure case filed by Southwest Guaranty, Ltd., against SIST and its subsidiary U.S. Acquisitions and Oil, Inc.

The receivership of the property at W5901 County Road BE in the town of Wescott was to stay in place until at least June 14, when a motion hearing is scheduled.

Steven J. Krueger, an attorney with the Van Lieshout Law Office representing Southwest in the case, was appointed receiver in the order issued Friday.

Southwest originally filed suit in December 2008 alleging the USA International Raceway, which is operated by U.S. Acquisitions and Oil, and SIST defaulted on a $2.2 million loan.

All civil action against SIST and its subsidiaries was put on hold in March 2009 when they filed for Chapter 11 bankruptcy protection.

Last week, a federal judge upheld a Bankruptcy Court ruling issued in September dismissing the bankruptcy case and lifting a stay on any civil litigation.

SIST is appealing that ruling to the Third Circuit Court of Appeals and has requested the stay be put back in place while the appeal is pending.

Under the receivership order issued by Habeck Friday, the receiver will take possession of the property and collect any rents or other profits while the foreclosure action is pending.

SIST also filed a motion Friday disputing Southwest's claims and maintaining Southwest dictated unfavorable and discriminatory terms on the original loan "on the basis of the alleged religious orientation of the Borrowers and the Guarantors."

In the motion, SIST is seeking damages from Southwest "in an amount in excess of $500,000," together with punitive damages, interest and attorney's fees.

SIST is claiming economic duress, violation of the Equal Credit Opportunity Act, breach of contract and injurious falsehood among the claims for relief in the motion.

To see more documents/articles regarding this group/organization/subject click here.