Frank wins.. Keeps GP, SA, GG, Palm Meadows, Xpressbet

[Kasept]

Magna parent to take control of assets
By Matt Hegarty

http://www.drf.com/news/article/110035.html

MI Developments, the parent company and largest creditor of the bankrupt racetrack company Magna Entertainment, will take possession of Santa Anita Park, Gulfstream Park, Golden Gate Fields, and Magna's account-wagering company as the result of an agreement reached with Magna's creditors' committee, several officials involved in the bankruptcy said Monday.

The agreement, which was presented to a U.S. Bankruptcy Court judge on Monday morning, could allow Magna to exit bankruptcy in the next several months, according to the officials. Under the agreement, MI Developments would swap a portion of Magna's debt for equity in the racing properties, according to the officials. MI Developments is owed approximately $435 million.

According to Reuters, the unsecured creditors' committee will receive at least $96.5 million under the agreement, which was reached in part to settle a lawsuit filed by the creditors' committee claiming that Frank Stronach, the chairman of MI Developments and Magna, had engineered deals between the two companies that allowed him to retain control of the tracks at the expense of debt holders and shareholders.