The Cleveland Speedway will be sold at auction July 24 either “lock, stock and barrel” or piece by piece.
U.S. Bankruptcy Judge John C. Cook gave final approval in Chattanooga on Thursday to a compromise and settlement and a motion to sell free and clear of liens and encumbrances.
The five-page document was negotiated between Gladys Johnson, the estate of Joe Lee Johnson, Ronnie Willkomm and U.S. Bankruptcy Trustee Jerrold Farinash.
Flipper McDaniel & Associates of Calhoun, Ga., will be the auctioneers at the sale, which will be held July 24. The time is tentatively set for 6 p.m.
The terms of the sale will be a 20 percent down payment at the time of sale with the closing to occur within 30 days of the date of sale.
Farinash gave some hope to those who want the site to remain an active speedway.
“We would expect to sell as an ongoing operation concern,” Farinash said. “That would be if they submitted the best bid, were willing to do the repairs and fix-ups, they have the potential to race the next weekend if they want.”
He said there are two to three potential “lock, stock and buyers” who have shown interest.
Farinash said if those bids do not satisfy the obligations of the agreement, “we will sell piece by piece — the scoreboard, the metal under the bleachers and the parcels of land.”
He said the location of the property itself has already drawn plenty of attention.
“We’ve had lots and lots of interest on the property,” Farinash said. “With its location and the intersection of the four-lanes, it’s a very attractive piece of land.”
The trustee would not confirm a price that would satisfy purchase, but the agreement gives him “the right to withdraw any items from sale in his sole discretion and to modify the terms of sale as necessary to effectuate the receipt of the highest sales price.”