NEWS
Md. Jockey Club defaults on loan
Posted: Friday, February 27, 2009 7:48 PM
Racetrack company Magna Entertainment Corp. has received written notice from PNC Bank that the Maryland Jockey Club, a subsidiary that operates Laurel Park and Pimlico Race Course, is in default of a loan agreement, Magna announced Friday.
PNC Bank informed Magna that it has chosen not to exercise its rights and remedies under the loan agreement at this time, but may to do so in the future.
The amount and terms of the loan were not disclosed.
Earlier this month Magna’s parent company, MI Developments, announced that it would not proceed with a reorganization proposal that would have infused Magna with $50-million in cash for daily operations and $75-million to fund expanded gaming plans in Maryland.
MI Developments’s decision not to move forward on the plan put Magna in danger of defaulting on several loans totaling about $250-million.
Magna also faces a March 5 due date on a $40-million credit facility with a Canadian chartered bank.
