Magna seeks additional bankruptcy financing

March 03, 2010

DOVER, Del. - Magna Entertainment Corp. says it needs additional debtor-in-possession financing as it works to emerge from Chapter 11 bankruptcy. Canada's Magna, the largest horse track owner in the United States, previously reached agreements with a subsidiary of its parent, MI Developments, for $64.4 million in financing. But Magna, which filed a reorganization plan two weeks ago, says it is facing liquidity issues because of an unexpected decline in horse racing revenues and weather-related race cancellations at Santa Anita Park in California. Magna is seeking court approval for $7 million more in financing from MI Developments to see it through the effective date of its reorganization plan. A Delaware judge is expected to consider the request at a hearing Wednesday. The company owns Laurel Park, Pimlico Race Course and the Preakness Triple Crown.

- Associated Press

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