MAGNA Entertainment Corp worth peanuts

[zinn21]

The following just sent to me via e mail from the TOC:

"Over the past several days, news reports have circulated suggesting that MEC’s continuing financial difficulties leave open the possibility of an imminent bankruptcy filing.

In order to protect the interests of California Thoroughbred horsemen and women in the event such a filing were to occur, TOC began negotiating with MEC representatives last week for the transfer of horsemen’s funds held in paymaster accounts at Santa Anita and Golden Gate Fields. "

The e mail further states:

"We thank you for your understanding and patience while this transition occurs. Please be assured that TOC believes horsemen’s interests will be better served and protected by this effort.

TOC wishes to thank the CHRB for its assistance in this matter, and the management and staff of Golden Gate Fields and Santa Anita, without whose cooperation this prudent and necessary transition would not have occurred."

[doublete]

Not good news- track employees (windows, clerks, etc) were paid two days early (today). Rumors flying now.

[Laurierace]

Not good news- track employees (windows, clerks, etc) were paid two days early (today). Rumors flying now.

Holy cow, that is rumor worthy.

[Joltman]

Somebody had better get a hold of those funds due to horsemen. Bankruptcy would probably freeze everything or worse.

Will there even be a SA Derby this year?

Years ago there was this big Churchill Downs vs Magna battle and Magna seemingly won most everything. Now with all the debt, if it all crumbles, maybe ChD will be in position to gobble up Magna assets at a pittance. As of last quarter ChD had $50mil in outstanding debt. They could probably double that and own all of Magna's assets. If Stronach doesn't do something big, real soon, even something creative will be no longer possible, thereby saving CA racing.

Given CAs financial state, i would think they need the revenues from SoCAl racing golden goose and might even try to accomodate the industry in a rare and desperate moment.


jm

[Altanbarr]

Since Magna owns Laurel and Pimlico, what does this mean for MD horseracing and the Preakness?

[majxmom]

Today the TOC wrestled control of the Paymaster's office at SA, and I imagine it will happen at GGF in a few minutes. WOW! They must be OUT of money. It certainly seems like a bankruptcy filing is imminent.

[majxmom]

STOP THE CLOCK!

Bankruptcy filed for this morning.

http://finance.yahoo.com/news/Magna-Ent ... 55933.html

[zinn21]

Chapter 11.. Wonder who will buy? There is little buying going on period right now. Would like to see an Oak Tree type takeover of GGF. Santa Anita is a crown jewel. Would imagine Magna would like to keep SA on a Reorg but I think it's the judge who has the final say. Any Chapter 11 experts in here??

[Danzig]

Sheikh Mo to the rescue.......

[TrueColours]

Ahhhh ... and doesnt look like MID wants Streufex either:

Will MEC be selling any of its racetracks or other assets?

In connection with the Chapter 11 filing, MEC has entered into an agreement with MID to sell a substantial portion of its assets. MID has made a “stalking horse bid” to acquire the following MEC assets: Gulfstream Park, Golden Gate Fields, Palm Meadows Training Center, Lone Star Park, AmTote International, XpressBet, The Meadows holdback note and MEC’s real estate joint venture with Forest City Enterprises.

The balance of MEC’s assets that MID has determined not to purchase at this time include Santa Anita Park, The Maryland Jockey Club, Remington Park, Thistledown, Portland Meadows, StreuFEX, Magna Racino and MEC’s other Austrian assets, lands in Ocala and Dixon, and MEC’s joint venture interests in HRTV, TrackNet Media and The Shops at Santa Anita with Caruso Affiliated.

MEC’s assets, including the assets MID has chosen to acquire pursuant to its “stalking horse bid”, will be the subject of a marketing and sale process
conducted by Miller Buckfire & Co,, LLC, MEC’s financial advisor and investment banker. During the marketing and sale process, MEC is expected to continue to operate in the ordinary course.

Now I am very interested to see what happens with that company in particular!

[Barbaro06]

It was in the Post this morning. Much anxiety over what is going to happen to the Preakness. The state (like it has the money right now) can buy the race but if there are no tracks to run it at, why bother?

I'm sure developers, even with this downturn, are licking their chops over the possibility of some real estate coming open to build something ridiculous. Here's the chance to rehabilitate the neighborhood around Pimlico.

I believe this spells the end of horse racing as we know it in Maryland. Years of mismanagement has lead to this and I'm sure farms will be packing up and moving like Northview which split its ops between MD and PA. I hate to be doom and gloom but the promise of slots and all that jazz associated with them was nothing but a bright shining lie. It was too little, too late. If the tracks close up for good, look at the jobs lost along with the farms. For shame.

[wilf]

And here I was wondering how would it all end if the ageing Stronach just keeled over one day!

[Danzig]

Maybe that little hippie kid of his can figure out how to unscrew daddy's FU's HAHAHAHAHHAHAHAHAHAHA

[Danzig]

The only folks "licking their lips" over Pimlico would have to be a bunch of slumlords. The last I heard was that Pimlico was amongst a shithole for real estate.

[Barbaro06]

Yeah it is Danzig but there is a word over here and its called "gentrification." Which translates into "move poor people out of area by building VERY expensive housing."