A downtown Shawano property and a vacant lot owned by the Samanta Roy Institute of Science and Technology (SIST) have been put into receivership and will be sold to help pay off the debts of one of SIST’s subsidiaries, according to court documents.
A federal court last week granted a motion for the appointment of a receiver to take possession of the building at 153 S. Main St. and a vacant lot on Mills Street.
The court order issued March 25 by District Court Judge William Griesbach gives the receiver the options of renting, leasing or marketing the properties to prospective buyers.
The court named Shawano Realtor Terry Hilgenberg as receiver.
The ruling is tied to a lawsuit filed in 2006 against SIST, its subsidiary Midwest Amusement Parks, LLC, USA International Raceway and Kal Gronvall over a debt involving go-karts at the raceway in Wescott.
The racetrack was sold in a foreclosure sale last year, but a long-running legal dispute over payment for go-karts purchased by the track remained.
A jury trial in 2008 in U.S. District Court ruled in favor of Canadian company MMG Financial Corp. in a breach of contract suit against Gronvall, who worked for the racetrack at the time, SIST and two of its subsidiaries, Midwest Amusement Park and U.S. Acquisitions and Oil.
MMG Financial argued in court documents that both entities were wholly-owned subsidiaries of SIST, making SIST responsible for the debt.
The ruling awarded MMG Financial payment of a $190,000 debt.
According to court documents, Midwest owned the property but the racetrack was operated by U.S. Acquisitions and Oil.