NEWS
Scoggins asks for patience with Magna proceedings
Posted: Saturday, April 25, 2009 3:20 PM
by Steve Schuelein
Gregg Scoggins, national director for regulatory affairs for Magna Entertainment Corp., calmly faced six commissioners of the California Horse Racing Board (CHRB) at its monthly meeting at Hollywood Park on Friday.
“A college professor once told me you need to get comfortable with confusion,” Scoggins said in discussing the significance of Magna’s recent Chapter 11 bankruptcy filing that has rattled the racing industry. “I’m one of the most comfortable men you could find.”
In keying on the California operations of the racetrack owner giant that includes Santa Anita Park, Golden Gate Fields, and San Luis Rey Downs among its properties, Scoggins urged patience.
“Just let the process run its course,” he said. “It’s already taken several twists and turns.”
Scoggins pointed to two recent areas of progress: Magna’s parent company, MI Developments Inc., withdrawing its stalking horse bid of $195-million to purchase various assets; and an extension of debtor-in-possession maturity from September 6 to November 6, with a reduction in the principal amount available from $62.5-million to $38.4-million.
Scoggins said three pending court dates should further clarify issues: one on April 29 to ensure that the Oak Tree Racing Association, which leases dates for a fall meet at Santa Anita, will be able to host the Breeders’ Cup World Championships for a second straight year on November 6-7; another on May 4 to determine which assets could be sold and which could be retained; and the third on May 7, to address fees issues that include California satellite facilities Southern California Off-Track Wagering Inc. (SCOTWINC) and Northern Off-Track Wagering Inc. (NOTWINC).
Sherwood Chillingworth, executive vice president of the Oak Tree Racing, Association, expressed confidence that the Breeders’ Cup site is not in jeopardy.
“We reached an agreement that our lease could not be negated until the meet is over,” Chillingworth said of an understanding involving Oak Tree, Breeders’ Cup Ltd, Magna, MI Developments, Wells Fargo and Co., Bank of Montreal, and a creditors’ committee.
“The petition was signed two days ago and the court granted us an urgency hearing to accept the petition and make it order of the court,” Chillingworth said of the April 29 hearing scheduled in Delaware, one day before the deadline Breeders’ Cup imposed to straighten out matters. “Since there is no opposition from anybody, I am confident that order will be forthcoming.”
In other meeting highlights:
*The Del Mar Thoroughbred Club was granted a six-day reduction in live race dates to 37 from its traditional 43 for its upcoming summer meet that runs from July 22 through September 9. The track requested the elimination of all Monday racing except Labor Day, effectively creating a five-day race week for the first six weeks of the meet. Tuesday was already dark. The track sought to add one race to its Wednesday, Friday, and Sunday cards to make up for some of the deficit.
*To fund shortfalls at state satellite outlets, the board approved an increased distribution of advance-deposit wagering revenue from California residents on California Thoroughbred races to 4.12% for SCOTWINC and 4% for NOTWINC.
*The California Commerce Club, a casino in Los Angeles County, was the first to be granted a license to operate a mini-satellite wagering facility under new legislation in the state.
*Rick Arthur, D.V.M., equine medical director for the CHRB, cited statistics from a survey that showed a 40% reduction in fatality rates since synthetic surfaces were mandated in the state. “From 38,000 starters, we have saved roughly 49 horses—a significant number—over what would have been if we had stayed on dirt,” Arthur said.
Steve Schuelein is a California-based THOROUGHBRED TIMES correspondent
