Even though Zayat Stables has filed for Chapter 11 bankruptcy protection, Fifth Third Bank will continue its push to have a trustee named to oversee the operation.
Ahmed Zayat said Feb. 3 the filing is designed to protect his Thoroughbred operation from efforts by Fifth Third to have a receiver appointed to oversee Zayat Stables, which owns more than 200 horses. Zayat, who owes the bank about $34 million, according to court documents, said he will make sure all bills related to the stable, including payments to trainers, suppliers, and farms where his horses are boarded, are paid during the time he reorganizes under Chapter 11.
The Lexington Herald-Leader reported Feb. 9 Fifth Third will request oversight in United States Bankruptcy Court in New Jersey, where the case will be heard March 8.
Fifth Third claims, according to the Herald-Leader, that Zayat diverted $2.75 million in insurance paid upon the death of multiple graded stakes winner Thorn Song in 2009. There have been no public reports of the horse’s death; the newspaper reported The Jockey Club has no record of it.
Thorn Song last raced in July 2009 in California and reportedly was sent to a clinic for treatment for abscesses in both front feet. The Herald-Leader reported a horse mortality claim for Aug. 2 was submitted.
Fifth Third claims most of the insurance for Zayat Stables has been dropped, the newspaper reported.