Magna Entertainment Corporation (MEC), which owns Santa Anita Park, Gulfstream Park, Thistledown Racetrack, and manages the harness racing operation at The Meadows, announced early Thursday afternoon that it had filed for Chapter 11 bankruptcy protection, and has agreed to sell Gulfstream, Golden Gate Fields, Palm Meadows Training Center, Lone Star Park, its interests in AmTote International, and a holdback note associated with its sale of The Meadows.
MEC's press release also stated that the aggregate offer price for the assets listed above is $195 million. The press release explained that MI Developments (MID) has made a “stalking horse bid” (an initial first bid) to acquire Gulfstream Park, Golden Gate Fields,Palm Meadows Training Center, Lone Star Park, AmTote International, XpressBet, The Meadows holdback note and MEC’s real estate joint venture with Forest City Enterprises (at Gulfstream Park). The balance of MEC’s assets that MID has determined not to purchase at this time include Santa Anita Park, The Maryland Jockey Club, Remington Park, Thistledown, Portland Meadows, StreuFEX, Magna Racino and MEC’s other Austrian assets, lands in Ocala and Dixon, and MEC’s joint venture interests in HRTV, TrackNet Media and The Shops at Santa Anita with Caruso Affiliated.
MEC’s assets, including the assets MID has chosen to acquire pursuant to its “stalking horse bid”, will be the subject of a marketing and sale process conducted by Miller Buckfire & Co,, LLC, MEC’s financial advisor and investment banker. During the marketing and sale process, MEC is expected to continue to operate in the ordinary course.
In addition, while Lone Star Park is a part of the parcel of assets MI Developments has bid for, it is also outside of the Chapter 11 filing. The MEC press release stated that several MEC subsidiaries were left out of the filing, with Portland Meadows racetrack, HRTV, and TrackNet Media among them.
According to Magna's press release, the company's day-to-day operations "...will continue uninterrupted throughout the Chapter 11 process while it undertakes to sell its assets and implement a reorganization of the company. All of MEC's businesses, including racetracks, casinos, XpressBet, and its tote services company, AmTote International, remain functional and will continue to conduct business as usual during hte Chapter 11 proceedings." The press release also noted that XpressBet is not one of the MEC subsidiaries in the Chapter 11 filing.
As part of the Chapter 11 filing, Magna has sought emergency relief so it can continue paying employees, purses and customers.
The press release also stated that MEC has arranged a six-month secured debtor-in-possession financing facility for $62.5 million from a subsidiary of MI Developments, the company's largest secured creditor and controlling shareholder.
|
Home :: News Archive :: Racing Reports :: Sale Reports :: Calendars :: Guide Directory :: Contact The Staff
Advertising Rates & Information For: Horseman And Fair World Magazine :: HarnessRacing.com :: Harness Racing Weekend Preview
Website Design by eLink Design, Inc. A Lexington Web Design Company :: Hosted by Intelliwire, LLC, An Offsite Backup Company
Site contents may not be reproduced without the expressed written consent of the publisher.
© 2012 Horseman Publishing Co., Lexington KY, All Rights Reserved
Advertising Rates & Information For: Horseman And Fair World Magazine :: HarnessRacing.com :: Harness Racing Weekend Preview
Website Design by eLink Design, Inc. A Lexington Web Design Company :: Hosted by Intelliwire, LLC, An Offsite Backup Company
Site contents may not be reproduced without the expressed written consent of the publisher.
© 2012 Horseman Publishing Co., Lexington KY, All Rights Reserved