MAGNA PROPOSES AUCTION FOR SOME OF ITS ASSETS
A hearing has been scheduled for April 3 in U.S. Bankruptcy Court in Delaware to consider a motion requested by bankrupt Magna Entertainment to auction some of its assets on July 16.
Included in the proposed auction, tentatively scheduled at the New York offices of Weil Gotshal and Manges, is Gulfstream Park in Hallandale, Fla., Palm Meadows training center in Palm Beach County, Fla., the AmTote totalizator company, Magna’s 50% interest in the Village at Gulfstream mall, the XpressBet advance deposit wagering company, and the partnership interest in Lone Star Park, a Grand Prairie, Texas, racetrack built on leased property.
In Magna Entertainment’s chapter 11 filing, parent company MI Developments made a stalking horse bid for those assets of $195 million. The auction has been proposed in the event more than one party makes a qualified bid on any of the properties.
Not included in the proposed auction is Santa Anita Park in Arcadia, Calif., Remington Park in Oklahoma City, Okla., the Maryland Jockey Club tracks Pimlico in Baltimore and Laurel Park in Laurel, Thistledown near Cleveland, Ohio, and Portland Meadows in Portland, Ore. Miller Buckfire and Co., and a financial adviser and investment banker hired by Magna in 2008, is handling a marketing and sale process for all Magna Entertainment’s assets.
Copyright © 2009, The Paulick Report
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Tags: lone star park, Magna auction, Magna Entertainment, magna entertainment bankruptcy
March 12th, 2009 at 7:18 pm
Gulfstream park and The Villages shopping center is a huge black hole just waiting to open up. All indications are that the project will go “belly up” and it is most probable that a judgment lien will be secured by the Magna Entertainment property. Nobody from the outside world will bid on a package containing Gulfstream, therefore a creative means for Stronach to end up with Lone Star & Golden Gate in the parent company MID, and eventually into the new comapny know as Raceco. Raceco will then just file its own bankruptcy when the Villages at Guilfstream project goes bust and in the meantime, as Stronach has said, these properties will be leased to a racing operator, probably another company he controls. This chaps a deviant genius with the best lawyers in the land.