MEC Parent Asks to Sell Remington for $80M
MI Developments, parent company of Magna Entertainment Corp., said Aug. 12 debtors filed a motion seeking court approval to sell MEC-owned Remington Park Racing & Casino in Oklahoma to a third party for $80.25 million pending “higher and better offers.”
The action was revealed in MI Developments’ second-quarter earnings report, which shows net income for the company’s real estate business at $31.3 million, up from $26.3 million for the second quarter of 2008. Revenue dipped slightly to $55.3 million to $55.2 million.
A subsidiary of the Chickasaw Nation bid on Remington and earlier expressed interest in Lone Star Park, another MEC holding located in Texas.
MEC filed for Chapter 11 bankruptcy March 5. Thus far, no properties have been sold.
MID earlier announced itself as a “stalking horse” for MEC properties. Though that bid scenario was terminated, MID said Aug. 12 it’s “continuing to evaluate whether to bid on MEC assets” during the course of the bankruptcy process.
MID said it would prevent “fires sales” of any MEC properties, including Santa Anita Park in California.
On Aug. 4, the debtors filed a motion in court to sell real estate in Ocala, Fla., for $5.75 million to an entity related with Fair Enterprise Ltd., which MID calls “part of real estate planning vehicle for the Stronach family.” Frank Stronach is chairman of MEC.
A hearing on the Remington and Ocala land sales has been requested for Aug. 26.
The status of other MEC properties is unknown. The MID earnings report said MEC “has advised the court it is continuing to explore all alternatives with respect to its remaining assets.”
In Ohio, MEC owns Thistledown, which must make a $13-million payment by Sept. 15 as part of its license fee to operate video lottery terminals. If the track’s owner—MEC or another company—fails to do so, it will be fined.
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