Zayat Stables filed a motion on Monday arguing that it should never have had a receiver appointed by Fayette County Judge Kim Bunnell, reports bloodhorse.com, because the emergency hearing called on Jan. 22 was procedurally flawed. The receiver was appointed after MGG Investment Group filed suit Jan. 21 against Zayat Stables for $23 million in damages.
The motion argued that MGG and Zayat Stables were already in negotiations, and suggests that the court order a liquidation of the equine collateral rather than appointing a receiver to oversee the stable's operations.
“This lawsuit should never have been filed, as lenders and borrowers regularly work out issues related to collateral without the need for a receiver or any judicial oversight at all,” read the motion. “That is exactly what could and should have happened here, as the parties were in negotiations that would bring maximum value out of MGG's collateral and likely make it whole.”
Read more at bloodhorse.com.
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