A federal bankruptcy judge has ruled that simulcast providers owed money from tracks operated by bankrupt Magna Entertainment are entitled to funds they paid bettors but not reimbursement for fees and commissions.
A compromise has apparently been reached that would forestall the implementation of exchange betting until at least 2012, according to the Pasadena Star-News.
MI Developments Inc. announced Aug. 27 a bonus program involving tracks owned by the company that could result in a $5.5 million bonus for the winner of the 2011 Preakness Stakes (gr. I).
During the first two months of MI Development's ownership of the previous Magna Entertainment assets, the racing and gambling operations lost $6.2 million, according to the latest quarterly report.
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.
Despite the earlier announcement that Magna Entertainment Corp. had a quarterly loss of $48.4 million and is seeking to sell core assets, including one or more of its top racetracks, management of the company that holds 60% equity interest in MEC continues to be optimistic of a turnaround.
Due primarily to losses by Magna Entertainment racetracks, MI Developments, the property arm of Canadian auto-parts empire Magna International, reported lower first-quarter profit May 7.
Despite mounting losses and lack of investor confidence, executives of racetrack operator Magna Entertainment remain confident the company's fortunes can be reversed.
Based on the recommendations of a special committee of independent directors, the board of Magna Developments has come out against proposals from Greenlight Capital Inc.
Losses sustained during 2004 and the fourth quarter by racetrack operator Magna Entertainment had a negative impact on the financial results for MI Developments during the same periods.
Magna Entertainment and MI Developments chairman Frank Stronach Monday commented on recent developments at the companies, which included the resignation of Brian Tobin as CEO of MID.
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