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  • Tribal Rule sire of Italian Rules 1st Alw (May 24, 7th BHP). Owner, Barber, Gary and Cecil; Breeder, Nick Cafarchia...
  • Medaglia d'Oro sire of Dealer 1st Alw (May 23, 8th CT). Owner, Coleswood Farm, Inc.; Breeder, Family Broodmare, LLC...
  • Strut the Stage sire of Head Honcho 1st Alw (May 23, 7th WO). Owner, Annecchini and D'Alimonte Holdings Inc. and Kingfield Farm; Breeder, William D. Graham...
  • Benchmark sire of Planet Sunshine 1st Alw (May 24, 5th GG). Owner, Thomas A. Shapiro; Breeder, Thomas Shapiro...
  • Luftikus sire of Joyful Kiss 1st Alw (May 23, 7th CT). Owner, Winfred L. Hess, Jr.; Breeder, Ann M. Casey...
  • Indian Charlie sire of Nechez Dawn 1st Alw (May 23, 7th AP). Owner, Tresner, Coby and Matsas, Alex; Breeder, B. P. Walden Jr., Hargus Sexton & SandraSexton...
  • Mancini sire of Ride Around Sally 1st Alw (May 23, 6th IND). Owner, Joe Uliano; Breeder, Spade Stable...
  • Arch sire of Wiki 1st Alw (May 24, 2nd PID). Owner, Midwest Thoroughbreds, Inc.; Breeder, Stuart S. Janney, III LLC....
  • Hard Spun sire of Gleaning 1st Mdn (May 23, 4th PID). Owner, Robert T. Manfuso; Breeder, Nursery Place & Robert T. Manfuso...
  • Chapel Royal sire of Mr Rodriguez 1st Mdn (May 24, 2nd BEL). Owner, Imperio, Michael and Loftus, Elizabeth; Breeder, Jill Imperio & Daniella Corian...
  • Hard Spun sire of Ribbon Taffy 1st Mdn (May 23, 5th IND). Owner, Pucek, John Paul and Marcinek, Paige; Breeder, Matthew R. Herbener...
  • Flower Alley sire of Bouquet Booth 1st Alw (May 24, 7th CD). Owner, Right Time Racing LLC; Breeder, Brookdale & Dr. Ted Folkerth...
  • Holy Bull sire of Catalan 1st Alw (May 24, 8th BEL). Owner, Elizabeth Loftus; Breeder, B. P. Walden & Dr. S. Marcum...
  • Posse sire of Parody 1st Alw (May 23, 4th PEN). Owner, Midwest Thoroughbreds, Inc.; Breeder, Don Mattox & Pam Mattox...
  • Proud Citizen sire of Citizen Kat 1st Alw (May 23, 7th PEN). Owner, Midwest Thoroughbreds, Inc.; Breeder, Mark Reid & Charles Zacney...
  • Smoke Glacken sire of Walker Bay 1st Alw (May 24, 8th CD). Owner, Hammersmith, Dennis L. and Paden Racing, Inc.; Breeder, Brian O'Rourke & Derry Meeting Farm...
  • Jazil sire of Love Me Good 1st Mdn (May 23, 2nd PID). Owner, Sheltowee Farm and Blazing Meadow Farm; Breeder, Sheltowee Farm...
  • Philanthropist sire of Rob the Cradle 1st Alw (May 23, 2nd WO). Owner, Andrews, Denny and Paradox Farms Inc.; Breeder, Gardiner Farms Limited...
  • Wando sire of Deb's Girly Girl 1st Alw (May 24, 6th RD). Owner, Deborah F. Metz; Breeder, Deborah F. Metz...
  • Latent Heat sire of Heated Troubles 1st Mdn (May 24, 5th RD). Owner, Ashleigh Stud; Breeder, Ashleigh Stud, Frank Ramos & JackieRamos...
  • First Samurai sire of Nakano 1st Alw (May 24, 8th CRC). Owner, Thoroughbred Futures Racing; Breeder, Hubert Vester...
  • City Weekend sire of City Sweets 1st Mdn (May 23, 3rd IND). Owner, Mast Thoroughbreds LLC; Breeder, Robert Gorham & Mast Thoroughbreds LLC...
  • Petionville sire of Wups 1st Thoroughbred Maiden Derby (May 23, 9th BOI). Owner, Paul Treasure; Breeder, Michael Iavarone...
  • Canadian Frontier sire of Golden Frontier 1st Alw (May 24, 3rd CD). Owner, George Fister; Breeder, Brereton C. Jones...

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Judge alters Magna’s financing plan

Posted: Friday, March 13, 2009 2:20 PM

by Frank Angst

A United States bankruptcy court will demand detailed oversight of a financing plan designed to continue day-to-day operations at tracks owned by Magna Entertainment Corp.

The racetrack owner filed for Chapter 11 bankruptcy on March 5 in United States Bankruptcy Court for the District of Delaware. Magna had proposed a $62.5-million debtor-in-possession (DIP) financing facility provided by its parent company, MI Developments Inc., but Judge Mary Walrath only immediately approved $13.3-million in DIP financing.

Walrath said each Magna track and racing association should apply for additional operations funding as needed.

The plan should allow Magna to continue operations at its tracks currently conducting live meets, such as Santa Anita Park and Gulfstream Park. Magna lawyers said the approved $13.3-million would be used to pay horsemen’s purse accounts, racetrack wagering settlements, and interest on some debt.

In denying the $62.5-million financing plan, Walrath said it appeared that $30.8-million would be going toward pre-petition debt owed to MI Developments. She also said Magna failed to present details on each track’s financial performance. Walrath said she had concerns about awarding DIP financing to profitable operations.

“I can only enter an interim DIP order that is absolutely essential to allow the debtors to operate until a final hearing can be held on no less than 15 days notice,” Walrath ruled. “These debtors are not substantively consolidated. The debtor has not given me the information necessary for me to know what each debtor needs to borrow on a debtor-by-debtor basis.

“It’s still not clear to the court, despite the testimony, what assets, of what debtors, have been pledged specifically to [MI Developments].”

Noting that Frank Stronach has significant ties to Magna Entertainment, MI Developments, and the MI Developments subsidiary that would handle the DIP financing, Kenneth Eckstein, a lawyer for bondholders at MI Developments, said a plan with more oversight was needed.

“We do have a situation where we have the principal shareholder, the chairman of the board, the [chief executive officer], the purported major secured lender, the DIP lender, the asset purchaser, all basically being controlled by one person and his affiliate entities and trusts,” Eckstein said. “There are serious questions, therefore, about the independence and the integrity of all of the transactions being proposed.

“They may be fine, but frankly, nobody knows because we don’t have enough information.”

Frank Angst is senior writer for THOROUGHBRED TIMES

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