Triple Crown-winning owner Ahmed Zayat may be close to bankruptcy, according to a report this week from the Lexington Herald-Leader. Zayat and his Zayat Stables were hit with a $23 million lawsuit earlier this week from New York-based MGG Investments in Fayette County Circuit Court in Lexington, Ky.
According to the Herald-Leader, MGG Investments claims Zayat used his equine assets to secure a loan on which he defaulted in September.
MGG Investments also claims that Zayat told the company he was broke, which prompted them to request a third-party party manager to take over day-to-day management of Zayat Stable. Fayette County Judge Kim Bunell granted that request at an emergency hearing Wednesday.
MGG Investments also claims Zayat secretly sold nine of his lifetime breeding rights in 2015 Triple Crown winner American Pharoah and pocketed $3.3 million in proceeds, rather than putting the money toward paying back his loan. Zayat also allegedly sold assets related to his ownership interests in Bodemeister, Justin Phillip, and Eskendereya among others.
Court documents revealed Zayat is considering dispersing his remaining equine interests.
Read more at the Lexington Herald-Leader
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