The financially ailing owner of the Preakness Stakes, Pimlico Race Course and Laurel Park formally withdrew Friday its proposal to auction off those assets in a bankruptcy sale this summer.
In a filing with the U.S. Bankruptcy Court in Delaware, attorneys for Magna Entertainment Corp. of Ontario, Canada, indicated they would still "explore all alternatives" with respect to the Maryland assets.
The news came as a relief to government officials who have been worried that Maryland's horse-racing legacy could be sold out of state.
"We take this as a potentially positive sign," said Shaun Adamec, a spokesman for Gov. Martin O'Malley. "The governor is prepared to work with Magna and all other potential buyers to reach an outcome that preserves the tradition and economic vitality of the sport in our state."
Magna, one of the largest track owners in the country, is still asking the court for permission to auction off much of its other assets, such as California's Santa Anita Park, in September.
Magna's decision to remove the Maryland assets from its auction proposal comes after the General Assembly in April authorized Gov. Martin O'Malley to use eminent domain to seize the Preakness and the tracks, as a way of ensuring that the second jewel of the Triple Crown keeps running in Baltimore.
At least four potential bidders have emerged in recent weeks for Laurel and Pimlico, including Baltimore developer David Cordish, but it is not clear whether Magna will sell the assets or try to maintain them under a reorganization. "They have not decided," said Venable bankruptcy attorney Greg Cross, who is representing Maryland in the matter.
Katherine Good, an attorney for Magna, did not return a request for comment.
