Edited press release
Magna Entertainment Corp. announced March 26 that it will not be filing its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2008, nor will it be filing quarterly reports on Form 10-Q, with the U.S. Securities and Exchange Commission or the Canadian securities regulators during the period it continues to operate its business as a debtor in possession under the U.S. Bankruptcy Code.
MEC's inability to file these materials is attributable to the circumstances of MEC's ongoing court-supervised restructuring process under Chapter 11 of the U.S. Bankruptcy Code. In particular, the expense and effort involved in complying with annual and quarterly reporting requirements cannot, in the opinion of the company, be justified in light of MEC's current operational and financial situation. MEC filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code on March 5, 2009 and currently operates its business as a debtor in possession. On March 5, 2009, MEC also sought and obtained recognition of the Chapter 11 proceedings from the Ontario Superior Court of Justice under section 18.6 of the Companies' Creditors Arrangement Act in Canada.
As a means of keeping the public informed of its financial condition during the remainder of the bankruptcy case, MEC will file monthly reports required to be filed with the U.S. Bankruptcy Court under cover of Form 8-K with the SEC and the Canadian securities regulators as well as any other disclosure required by Form 8-K. MEC also intends to comply with the alternative information guidelines as set out in National Policy 12-203 of the Canadian securities regulators throughout the default period. In that regard, MEC will issue default status reports in the form of news releases that include information relating to material changes in the information contained in this news release and material information concerning MEC's affairs that has not been generally disclosed.