Prominent NASCAR industry sponsor DC Solar has filed for chapter 11 bankruptcy in the aftermath of a Dec. 18 raid of its California headquarters and the home of founders Jeff and Paulette Carpoff.
In documents filed Monday on behalf of DC Solar, the company's representative, Tracy M. O'Steen, has declared Seth Freeman as the debtors' chief restructuring officer.
Freeman confirmed that the FBI and IRS raids seized “funds from all bank accounts associated with the DC Solar businesses” and “hundreds of items essential” for DC Solar to continue operating.
Among the items seized included computer severs, computers, hard copy files of corporate records, investment agreements, lease agreements, vendor agreements and communications with investors, customers and insurance providers.
The company was forced to lay off approximately 100 employees as a result.
The company was a primary sponsor of Chip Ganaasi Racing's Monster Energy NASCAR Cup Series and Xfinity Series programs. It sponsored a handful of races on Kyle Larson's Cup Series car and had just entered into an agreement to sponsor Ross Chastain's full-time Xfinity Series effort.
As a result of the seizure, Ganassi was forced to shutter its Xfinity program due to a lack of sponsorship. Chastain returned to the midpack JD Motorsports outfit that he had driven for for over the past four seasons.
Court filings show DC Solar still owes Chip Ganassi Racing $4.3 million.
The company also had sponsorships in place with several racetracks. It was the primary sponsor for both the ISM Raceway and the Richmond Raceway modernization projects.
It also owes the following to these NASCAR entities:
– International Speedway Corp. – $1,025,000
– Kansas Speedway – $750,000
– ISM Raceway – $750,000
– Richmond Raceway – $750,000
– Talladega Superspeedway – $750,000
Since 2008, DC Solar has been manufacturing and leasing mobile, solar-powered energy products, including generators, light towers, telecommunications equipment and electric vehicle charging stations. A meeting of DC Solar creditors is expected to take place in the Nevada County courthouse at 2 p.m. on March 4.
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