Magna Entertainment Faces Opposition in Bankruptcy Filing

March 30, 2009

Magna Entertainment Corp., the Canadian-based operator of seven horseracing tracks in the U.S., will face creditor, shareholder and lender opposition when it goes to court on April 3 for approval of sale procedures.

MI Developments is offering to buy three tracks for $44.2 million cash, plus an exchange for $135.6 million in debt. The other tracks are to be sold in companion auctions, if Magna gets its way with the bankruptcy judge in Delaware.

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.

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