Parent company of Magna Entertainment to acquire Maryland tracks, auction canceled
By Randall Chase, APTuesday, March 23, 2010
Magna parent to acquire Maryland tracks
WILMINGTON, Del. — The parent of track owner Magna Entertainment Corp. has agreed to buy its Maryland assets, which include the Laurel Park and Pimlico tracks.
As a result, a bankruptcy auction of the assets planned for Thursday was called off.
To acquire the assets of the Maryland Jockey Club, Magna parent MI Developments will pay $89 million to settle a lawsuit filed by Magna’s unsecured creditors committee. That money will be used to pay general unsecured claims against Magna.
MID also will pay about $13 million to cover secured claims of PNC Bank, about $6 million for holders of unsecured claims against the jockey club, and $5 million to the former owners of Laurel Park and Pimlico.
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