Magna gets more time, to complete bankruptcy

March 04, 2010

WILMINGTON, Del. - Horse-track owner Magna Entertainment Corp. has won court approval for additional financing and more time to complete a Chapter 11 reorganization plan. A Delaware judge on Wednesday authorized $7 million in additional financing to Magna from a subsidiary of its parent, MI Developments. MID previously agreed to extend $64.4 million in financing, but Magna said it was facing liquidity issues because of a decline in horse racing revenues and weather-related race cancellations at Santa Anita Park in California. The judge also extended the time during which Magna has exclusive authority to file a reorganization plan. PNC Bank, which holds a lien on Magna's Maryland assets, objected, saying Magna has dragged its feet and failed to provide information about the sale of Maryland Jockey Club assets, including Laurel Park, Pimlico Race Course and the Preakness Triple Crown race. The sale, which has been postponed four times, currently is set for March 25.

- Associated Press

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