Magna Entertainment Files For Ch. 11

Law360, New York (March 5, 2009, 12:00 AM EST) -- Racetrack betting operator Magna Entertainment Corp. and several of its subsidiaries have sought Chapter 11 protection, unable to shake a debt burden of $600 million even after numerous attempts at restructuring.

The Ontario, Canada-based company, which operates Baltimore's Pimlico racetrack, said it will continue operations while reorganizing in the United States Bankruptcy Court for the District of Delaware. It is also seeking Chapter 11 recognition with the Ontario Superior Court of Justice.

“Simply put, MEC has far too much debt and interest expense,” Frank Stronach, MEC's...
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