San Antonio billionaire Red McCombs might have less than a week to decide whether he's willing to be bought out of the Circuit of the Americas racetrack or instead will purchase the shares of Full Throttle, the company of Tavo Hellmund, once the driving force behind the project.
That's the claim made in a letter sent Wednesday from Hellmund's lawyers to McCombs. The letter contends that, in accordance with a company agreement, a buy-sell procedure began on Jan. 11, and the 90-day period for a relevant response expired Wednesday. The letter also claims McCombs now has until next Wednesday to say he will purchase Full Throttle's shares or McCombs' shares will be considered sold, with the closing on May 25.
Buy-sell, or push-pull, agreements are meant to resolve extreme differences in companies. One party makes an offer to buy out the other with the knowledge that it also then opens up the possibility of a reverse buyout.
According to the letter, Full Throttle is offering to acquire McCombs' 20 percent share for $8 million while claiming that Full Throttle's slightly larger share would be valued at $8.2 million.
If Full Throttle is successful in obtaining McCombs' stake, it could change the dynamics of a $300 million project that has been marred by a rift between Hellmund and Bobby Epstein, who is believed to be the lead investor.
The letter states, Upon the consummation of the McCombs Units ... Full Throttle expects to hold over 40 percent of the equity of the Company and have the power to appoint three of the Company's 5 managers.
