Magna Entertainment Reorganization Plan Filed

The reorganization plan for Magna Entertainment that was announced in January was filed Feb. 18 in Canada. A March 23 hearing has been scheduled for approval of the explanatory disclosure statement.

According to the filing by MI Developments, which will receive the non-real estate assets of Magna under the plan, the reorganization plan represents the settlement in principle that was announced Jan. 11. Under that settlement, unsecured creditors will receive at least $96.5 million, which will be financed by the sale of Pimlico and Laurel Park racetracks in Maryland. The auction of Pimlico and Laurel is scheduled for Feb. 23 and will be approved March 3.

Under the reorganization, among the assets that will be transferred to MID are Florida’s Gulfstream Park, and Santa Anita and Golden Gate in California.

Magna filed for Chapter 11 bankruptcy in 2009, listing $1.05 billion in assets and $959 million in debt.

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