Del. judge allows Magna Entertainment more financing, more time on reorganization plan

By Randall Chase, AP
Wednesday, March 3, 2010

Magna gets more time, money in bankruptcy case

WILMINGTON, Del. — Horse-track owner Magna Entertainment Corp. has won court approval for additional financing and more time to complete a Chapter 11 reorganization plan.

A Delaware judge on Wednesday authorized $7 million in additional financing to Magna from a subsidiary of its parent, MI Developments. MID previously agreed to extend $64.4 million in financing, but Magna said it was facing liquidity issues because of a decline in horse racing revenues and race cancellations at Santa Anita Park in California.

The judge also extended the time during which Magna has exclusive authority to file a reorganization plan. PNC Bank, which holds a lien on Magna’s Maryland assets, objected, saying Magna has dragged its feet and failed to provide information about the sale of Maryland Jockey Club assets.

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