Racetrack Owner Magna Files Reorganization Plan

By Jacqueline Bell

Law360, New York (February 18, 2010, 3:09 PM ET) -- Bankrupt racetrack operator Magna Entertainment Corp. has filed a reorganization plan reflecting a $96.5 million settlement reached last month between unsecured creditors and Magna's majority shareholder.

In the settlement between Magna's parent, MI Developments Inc., and the official committee of unsecured creditors announced in January, MID agreed to pay creditors $76.5 million in cash, plus an additional $20 million from the sale of Lone Star Park racetrack.

The settlement resolves allegations made by the unsecured creditors that MID improperly failed to sell the racetrack operator's marketable...
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