Under an agreement between the various parties, Bluewater Sales of Lexington has been appointed as receiver to take possession of and sell more than 130 horses owned by Stonewall Stallions and related entities.
The order appointing Bluewater was entered May 26 by Fayette Circuit Judge Pamela R. Goodwine in connection with a lawsuit filed by Fifth Third Bank against Stonewall, its principal owners, and a number of related entities that are registered as limited liability corporations. Fifth Third contends the defendants owe more than $14.8 million on defaulted loans.
As part of an agreement between Fifth Third and Stonewall, NeverTell Farm, Audrey Haisfield, Marc Haisfield, and others, Bluewater will take possession of and proceed with the management and sale of 134 horses and two stallion shares. The horses that will be sold by Bluewater were used as collateral for the Fifth Third loans, according to documents filed in the case. The receivership order notes there are questions about whether an additional dozen horses owned by the defendants were part of the collateral.
Most of the horses are broodmares, horses of racing age, and weanlings and yearlings. Headlining the list of horses to be sold are grade I winners Jostle, who is listed as being in foal to Strong Contender, and Nonsuch Bay, who is in foal to A.P. Warrior.
The agreed order does not state how or when the horses will be dispersed by Bluewater. "The receiver shall take charge of, operate, preserve, maintain and care for the collateral, and its progeny, until it can be sold in the manner which the receiver and Fifth Third deem commercially reasonable."
John Hamilton, a Lexington attorney who represents Stonewall and the Haisfields, said his clients agreed to sell the horses pledged as collateral because they want to get out of the broodmare business. He said the order to appoint a receiver does not affect Stonewall’s real estate or stallions standing at the farms in Kentucky and Ocala, Fla.
The six stallions at the Kentucky farm include turf champion Leroidesanimaux, who has a 2010 fee of $15,000, and A.P. Warrior, who stands for $10,000. The Ocala farm is home to five stallions.
The receivership order outlines the terms and conditions under which Bluewater can take possession and manage the horses and the access for the defendants and Fifth Third’s representatives.
In addition to reimbursement for all reasonable out of pocket expenses associated with the horses, Bluewater will be paid a 3% commission on the gross price for which each horse is sold and $200 per hour for "time associated with overseeing horses located outside Kentucky, collecting stud fees, managing and collecting stallion contracts, collecting breeders’ awards, and accounting to the court."
In addition, the regular daily board and sales preparation rates for Bluewater and any other farms or other contract facilities that take the Stonewall horses will be applied. In a separate listing in the court documents, those charges listed board and sales prep rates of $30 and $45, respectively for Bluewater; $27 per day each for broodmare boarding and weanling boarding for Hopewell Farm; monthly foal board rate of $170 for Hopewell; and a daily training board rate of $60 for Leprechaun Racing.
Hamilton said his clients are in the process of negotiations to settle a suit filed last year by Harleysville National Bank & Trust in Pennsylvania against Stonewall, Audrey Haisfield, and Marc Haisfield for allegedly defaulting on $15.2 million in loans.
Established by Richard and Audrey Haisfield, Stonewall Stallions was previously home to Medaglia d'Oro , the sire of 2009 Horse of the Year Rachel Alexandra. Sheikh Mohammed’s Darley operation bought Medaglia d'Oro last year. The stallion stands the 2010 season for $100,000.
The defendants in the Fifth Third suit are: NeverTell Farm Kentucky LLC; Stonewall Farm Stallions 53, LLC; Stonewall Farm LLC; Stonewall Farm Stallions 53, Inc.; NeverTell Farm Kentucky I, LLC; Pondering, LLC; Jostle, LLC; Nonsuch Bay, LLC; NeverTell Racing, LLC; Miss Nashwan, LLC; Cat Alert, LLC; Spirited Maiden, LLC; Kyco, LLC; Palm Beach I, LLC; Audrey Haisfield and Marc Haisfield.