The bankruptcy reorganization plan for Magna Entertainment that includes the transfer of Santa Anita, Gulfstream, and Golden Gate to MID Developments has been implemented, effective at 5:01 p.m. (EDT) April 30.
"With the closing of the bankruptcy process, MID has substantially enhanced its real estate portfolio," Dennis Mills, MID’s vice president and CEO said in a statement. "Going forward, MID is determined to work with the racing industry and local regulators to develop business models that will result in sustainable returns for each of our racing, gaming and real estate assets."
Under a settlement that led to the dismissal of litigation filed by the creditors committee, the unsecured creditors of MEC will receive $89 million in cash plus $1.5 million as a reimbursement for certain expenses in connection with the action under the reorganization plan. Also under the plan, MEC assets that have been transferred to MID include Santa Anita Park, Golden Gate Fields, Gulfstream Park, and MEC’s interest in The Village at Gulfstream Park, a joint venture between MEC and Forest City Enterprises.
Some of Magna International's assets, including the Maryland Jockey Club, Portland Meadows, AmTote International and XpressBet, remain subject to ongoing regulatory approval processes, according to the MID announcement.
MID also announced that the non-real estate related MEC assets that have been transferred to MID, the company "intends to later announce certain forbearance terms or funding limitations or other restrictions to be approved by the special (creditors) committee with respect to any future investments by MID in, or funding to be made by MID in respect of, such assets."