Attorneys for Magna Entertainment have struck a deal in U.S. bankruptcy court with unsecured creditors that will allow Frank Stronach to maintain control of Santa Anita Park, Gulfstream Park and Golden Gate Fields and the account wagering company Xpressbet.com and the Amtote totalizator company, Reuters and Bloomberg have reported.
The creditors will receive nearly $100 million, according to the reports, while Magna sells off the Maryland Jockey Club tracks (Pimlico and Maryland) and Thistledown in Ohio. MI Developments, which, like Magna Entertainment, is controlled by Stronach, will take over ownership of the aforementioned assets. The unsecured creditors claimed in a lawsuit they were owed as much as $260 million from the total MEC debt of nearly $1 billion. Magna officials hope to have a reorganization plan in place by next month to get the company out of bankruptcy.
After you've read the stories,feel free to return to the Paulick Report and comment on this latest development regarding Stronach and his affiliated companies. — Ray Paulick
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