MEC Loses Stalking Horse Bidder After Objections

Law360, New York (April 20, 2009, 12:00 AM EDT) -- Following a flurry of objections from unsecured creditors, MI Developments announced Monday that it would abandon its stalking horse bid for bankrupt racetrack operator Magna Entertainment Corp. and pare down its offer of debtor-in-possession financing.

MID has not yet decided whether it will bid on the racetrack operator's assets during the course of the Chapter 11 sales process, MID CEO Dennis Mills said in a statement. Though MID contended in courtroom briefs that MEC had a “dire need” of financing, Mills acknowledged their proposed $180 million...
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