Magna Investor Settles With Creditors For Over $96M

Law360, New York (January 11, 2010, 5:04 PM EST) -- Magna Entertainment Corp.'s majority shareholder will cough up more than $96.5 million to resolve allegations that it improperly failed to sell the racetrack operator's marketable assets and handed out unnecessary loans as the company collapsed.

The settlement between creditors and MI Developments Inc. was announced Monday in the U.S. Bankruptcy Court for the District of Delaware, allowing the company's bankruptcy proceeding to move forward, according to Kramer Levin Naftalis & Frankel LLP's Kenneth H. Eckstein, who represents the debtor's unsecured creditors.

As part of the settlement,...
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