Judge to consider Magna Entertainment request for additional financing

Magna seeks additional bankruptcy financing

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 company, 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.