Frank not done yet: New MEC details emerging..

[Kasept]

As Steve Zorn suggested weeks ago in his Racing Business blog, Frank's entire scheme will end up being taught in business schools. Lose half a billion and come back with most everything you started with... Amazing.


Magna to operate tracks as subsidiary
By Matt Hegarty

http://www.drf.com/news/article/102512.html

MI Developments, the controlling shareholder of bankrupt racing operator Magna Entertainment Corp., plans to operate the assets it buys from Magna through a wholly owned subsidiary, the company said Friday in a release accompanying documents detailing its 2008 financial performance.

The plans to segregate the racing properties into a separate subsidiary - tentatively called RaceCo - are the first detailed comments made by officials at MI Developments about the company's intentions for a bundle of racing properties that it has already agreed to purchase from Magna for a total consideration of $195 million. Under the plan, MI Developments will operate the properties until Dec. 31, 2011, the company said, at which time it will sell the subsidiary or spin it off to shareholders if it is profitable, or "cease racing and gaming operations . . . and either sell or develop all of RaceCo's remaining assets."

Last week, Mills said that MI Developments is evaluating whether to bid on other properties owned by Magna that are not included in the MI Developments bundle which include Santa Anita Park, Laurel Park, and Pimlico Racecourse. Magna has asked the bankruptcy court to approve a separate auction process for those properties.