MAGNA: Desperate hours fast approaching..

[zippyneedsawin]

Magna files for Chapter 11 bankruptcy
By Matt Hegarty

http://drf.com/news/article/102049.html

Magna Entertainment Corp. filed for Chapter 11 bankruptcy in a Delaware court on Thursday and has reached an agreement to sell several of its racetracks, including Gulfstream Park and Golden Gate Fields, to its parent company and largest creditor, MI Developments, the company said.

In a release, Magna said that the filing will not jeopardize any of its ongoing race meets, including those at Gulfstream, Golden Gate Fields, and Santa Anita Park, which on Saturday will host the Santa Anita Handicap, the track's most high-profile race.

Magna will seek "to sell its assets and implement a reorganization of the company" under the bankruptcy filing, the company said. One of its subsidiaries, XpressBet, an account-wagering company, was not included in the Chapter 11 filing, Magna said.

According to Magna, the agreement with its parent company, MI Developments, includes Gulfstream, Golden Gate, Palm Meadows Training Center in Florida, Lone Star Park, AmTote, and XpressBet. MI Developments has agreed to buy the assets for $44 million in cash, the rights to a $15 million lease, and a credit on $136 million in debt Magna owes to MI Developments. However, the agreement can be topped by a third-party offer, Magna said.

Magna said that a bankruptcy advisory firm, Miller Buckfire and Co., will conduct "a marketing and sale process of the company's assets" during the reorganization.

Magna has lost $500 million over the last five years and owes hundreds of millions of dollars to MI Developments and other lending institutions. Approximately $200 million of that debt was scheduled to come due within the next two weeks.

[slotdirt]

I've heard rumor Laurel Park is as good as gone.

[Pedigree Ann]

Originally Posted by slotdirt

I've heard rumor Laurel Park is as good as gone.

I thought MEC only ran the meets and didn't own the plants in Maryland.

[slotdirt]

I don't know, thought I saw an article on it in the Post. Let me do some digging.

[phystech]

Originally Posted by Pedigree Ann

I thought MEC only ran the meets and didn't own the plants in Maryland.

Magna owns both Laurel and Pimlico, as well as the old Bowie Race Course which is now a training center.

I haven't heard a whole lot but one big thing I have heard - there's no racing on the schedule after the Preakness. Typically, Pimlico runs through Belmont Day.

[Round Pen]

If We could get Halsey Minor To Buy Gulfstream and Restore it to the way it used to be

[Pedigree Ann]

Originally Posted by phystech

Magna owns both Laurel and Pimlico, as well as the old Bowie Race Course which is now a training center.

I haven't heard a whole lot but one big thing I have heard - there's no racing on the schedule after the Preakness. Typically, Pimlico runs through Belmont Day.

"MEC acquired a majority interest in the operations of Laurel and its sister track, Pimlico, in November 2002." its says on the MEC tracks site.

Whereas, the same site says, "MEC acquired Gulfstream Park in September 1999."

This sounds to me like MEC only holds the license and runs the racing and doesn't actually own the facilities. This is what I recall from when they made their deal with another lousy manager of tracks, the younger Mr. de Francis. But without the licensee, the track can't run, so it amounts to the same thing.

[phystech]

Originally Posted by Pedigree Ann

"MEC acquired a majority interest in the operations of Laurel and its sister track, Pimlico, in November 2002." its says on the MEC tracks site.

Whereas, the same site says, "MEC acquired Gulfstream Park in September 1999."

This sounds to me like MEC only holds the license and runs the racing and doesn't actually own the facilities. This is what I recall from when they made their deal with another lousy manager of tracks, the younger Mr. de Francis. But without the licensee, the track can't run, so it amounts to the same thing.

I can assure you, Magna owns the facilties at Laurel and Pimlico. In fact, they also own the catering business that runs the bars and eateries at the tracks, they own the manure hauling, they own the vans that transport horses from Bowie to Laurel or Bowie and Laurel to Pimlico, etc. etc......

[Cannon Shell]

Originally Posted by phystech

I can assure you, Magna owns the facilties at Laurel and Pimlico. In fact, they also own the catering business that runs the bars and eateries at the tracks, they own the manure hauling, they own the vans that transport horses from Bowie to Laurel or Bowie and Laurel to Pimlico, etc. etc......

Which is the root of the problem...