More Troubles for Lone Star Park

From Mike Hindman at D Magazine’s new Sports Blog InsideCorner:

Magna Entertainment (MEC), owner of the rights to conduct racing at Lone Star Park, has filed a motion in Delaware bankruptcy court seeking permission to auction off it’s interest in LSP on April 3.

Earlier this week, the bankruptcy judge rejected a proposed $62.5 million loan from MI Developments against bondholder opposition. The court approved a loan for $13 million instead.

MEC had said the loan was necessary to maintain operations during the bankruptcy proceedings.

MEC is conducting racing at Gulfstream Park in Hallandale, Florida, Santa Anita Park in Arcadia, California, Golden Gate Fields in San Francisco and Laurel Park in Maryland.

How much of the $13 million will remain to operate Lone Star Park — and whether any of it is necessary for LSP to operate as planned in the event they are not purchased at auction, is unknown.

My call seeking comment from Lone Star Park spokesman Dan Leary was not immediately returned.

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One response to “More Troubles for Lone Star Park

  • RiderAng

    Magna Entertainment has been in trouble for a while now, the last 5 years for sure. They were already in bad shape with LSP when Louisiana passed their racino slots bill (2002 or 03?). As a result, instead of coming to LSP a lot of top trainers take their horses to LaD where there’s more purse money, and tourists go out of state for the casinos. Plus, the Breeder’s Cup venue in 2004 didn’t save Magna’s necks in the slightest, or Lone Star either for that matter. It’s sliding towards becoming a cheap track with cheap horses, and it affects the bottom line.

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