A federal bankruptcy judge recently signed an order paving the way for Churchill Downs Inc. to make a contractual payment of nearly $150,000 to the Jockeys’ Guild, which will use the money to pay on medical and insurance bills.
Judge David T. Strosberg made the ruling during a March 19 hearing in the U.S. Bankruptcy Court Western District of Kentucky Louisville Division, overruling an earlier objection made by the creditor’s committee. CDI and the Jockeys’ Guild last year signed an agreement by which the racetrack company resumed payments for certain television, video, and off-track betting rights claimed by the Jockeys’ Guild.
Per the agreement, $147,533 was due Jan. 15. But expressing concerns over the bankruptcy protection the Jockeys’ Guild entered into last October, CDI filed a motion asking the court to ensure the money would be used for its intended purposes. The creditor’s committee, which includes embattled former Jockeys’ Guild manager Wayne Gertmenian, had objected to a resolution in the matter, in part, because it said it was not fully able to examine details of the contract even after signing a confidentiality agreement.
The order paves the way for the Jockeys’ Guild to pay bills that include 324 health claims totaling nearly $100,000, prescription drug fees totaling nearly $30,000, and insurance premiums of more than $28,000, among others.
“Basically it was for the benefit of the riders, not only at Churchill, but riders throughout the country,” Jockeys’ Guild manager Terry Meyocks said. “We are appreciative of what CDI has done, and the Guild will do whatever it can to promote CDI properties.”
A reorganization plan to emerge from Chapter 11 bankruptcy originally was due March 12, but the Jockeys’ Guild has asked the court for an extension to May 26, citing the delay in receiving the CDI funds. CDI’s next payment is scheduled for May 15, according to documents filed with the court.