MAGNA: Desperate hours fast approaching..
 

MEC Reorganization Plan Scrapped
By Ryan Conley

Magna Entertainment Corp. said Feb. 18 it might not be able to meet pressing financial obligations unless alternative measures are found, a revelation disclosed following the sudden halt of a controversial reorganization proposal for the company and its controlling shareholder, MI Developments.

http://www.bloodhorse.com/horse-raci...-plan-scrapped

In a separate release, MEC said substantially all of its other current and long-term debt will also become due on demand as a result of cross-default provisions within loan agreements, unless MEC is able to obtain waivers, modifications or extensions.

"In the event MEC is unsuccessful in its efforts to raise additional funds, through an alternative transaction with MID, assets sales, by taking on additional debt or by some other means, MEC will not be able to meet such obligations," the MEC release said.

Steve, please advise as to when I should withdraw all monies from my Xpressbet account.......I dont want to get stuck like the people at the dogtrack. LOL. Or maybe not LOL. hmmmmm.........

Matt Hegarty's take..


Failed plan results in Magna's loans coming due
By Matt Hegarty

http://www.drf.com/news/article/101765.html

MI Developments has abandoned a complex proposal to spin-off the troubled racing company Magna Entertainment Corp., according to both companies, a decision that leaves Magna with few options to retire a crushing debt load.

In a release, MI Developments said it had canceled the plan because of "current global economic conditions." The plan, which was announced in late November but was immediately opposed by several large shareholders, would have transferred all of MI Development's stock in Magna Entertainment to a company controlled by Magna's founder, Frank Stronach.

If you logged on today, knew nothing of horse racing, Magna, Stronach, etc and you read this paragraph in the Heg piece, you'd have to be floored and wondering how on earth this company is still afloat:

-$500,000,000 lost over five years
-$500,000,000 in debt

Words cannot describe how poorly run Magna is...numbers do the trick.

Who would lend that kind of money to these people? No wonder the economy is in the tank

Hegarty follow up...

http://www.drf.com/news/article/101770.html

The cancellation of the spin-off plan suggests that Magna Entertainment is one step closer to bankruptcy reorganization. If Magna files for bankruptcy, the company will likely continue to operate its racetracks under the protection of the court, but could face a forced sale of several of its properties as a means of paying off creditors.

can they bring in a group of chimps to run gulfstream, it would be a great improvement

Bettors' funds are safe, officials say
By Matt Hegarty

http://www.drf.com/news/article/101860.html

Wagering accounts held by customers of XpressBet will be protected if XpressBet's parent company, Magna Entertainment Corp., files for bankruptcy, regulatory officials said Monday.

XpressBet, like many other national account-wagering companies, is licensed by the Oregon Racing Commission, which requires the companies to maintain accounts under guarantees by the Federal Deposit Insurance Corp.

Another rule states that "funds of an account holder . . . shall remain the property of the account holder for all purposes."

Gary West reports that the city of Grand Prarie could run the upcoming meet at Lone Star. Reported in the Star telegram

I wonder if forced sale of MEC properties would mean the shuttering of some tracks. Laurel, sadly, comes to mind.

Geez, guess I need to stop by Laurel tomorrow and check to make sure horseman's funds are safe if Laurel gets shut down.

Even though the horseman's purse account is Inc.'d, I wonder who would administrate and write the checks if the doors were shut.

No idea if Laurel would ever be shuttered, but I'd have to imagine prime development real estate in PG County would fetch a pretty penny should it ever come to that.

Regardless of any of our feelings about Magna, this inevitable disaster doesn't feel like a good thing for the industry.

Try working for a small magna track LOL good thing is our little place has been holding its own and prospering.

But if this all goes down, Andy, you think they need a 5th string announcer at NYRA?? I could also maybe pick up losing at the tickets at the Big A LOL

Look, they got into some bad deals, made some bad decisions, bad breaks with the economic downturn, it happens, we cant let them collapse.

Sound familiar?

The way I understand it, mec dosent own the track only the license for racing. this is the LS set up <I dont know the set up with the other tracks.

Give Magna a Bailout!!!!!!!!!!!!!!!!!!

Magna Entertainment Corp. will be delisted from the Toronto Stock Exchange starting in April, the company announced March 3
MEC, which is battling pressing debt issues, said it received a letter from the exchange March 2, notifying the company its Class A shares would be delisted at the close of April 1 trading. The delisting was imposed for failure of MEC to meet continued listing requirements, the company said.

http://www.bloodhorse.com/horse-raci...443&source=rss

bump:o


-bt-