Magna Entertainment Corp.

As of March 10, 2009, Magna Entertainment Corp said on Thursday it filed for bankruptcy protection in the United States and sought court recognition of that status in Canada as it struggles with a mountain of debt.

According to Bloomberg, Magna has assets of $1.05 billion and $959 million in debt. Liabilities include $500 million in senior and junior secured financings and $255 million in subordinated notes. Trade debt is about $10 million, a court paper said.

MEC said it had a $40 million note due Thursday, and that if it was unable to meet the obligation, it would cause an additional $230 million in debt to come due.

As part of the Chapter 11 filing, MEC said it sought emergency relief to ensure continued payment of employee wages and benefits, as well as track winnings, and to maintain its ability to honor existing customer programs.

Sources and Related Articles:

• Delphi, Lehman, Nortel, Buffets, Magna: Bankruptcy
• Debt-laden Magna Entertainment seeks protection

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