miff Wrote:
-------------------------------------------------------
> Tough to say from this article but it sounds as
> though Frankie boy is selling the land to the
> former parent development company of MAGNA.Can
> condo\'s and shopping malls be far behind at these
> racetracks, if thats the case? Frank Stronach
> should be put in jail for destroying beautiful
> Gulfstream Park.
Mike, get a cup of coffee, then read the article.
They could be working out of bankruptcy, but SA and GP aren\'t going anywhere soon.
Happy Thanksgiving.
>
> Bloodhorse:
> Magna Entertainment Corp. announced Nov. 26 an
> agreement with MI Developments, the company’s
> controlling shareholder, which will allow it to
> “recapitalize and reposition MEC to enable it to
> pursue its strategy of horse racing, gaming, and
> entertainment on a standalone basis.”
>
> If the plan is implemented, MEC will ultimately be
> controlled directly MEC chairman Frank Stronach.
> MID would no longer have any ownership interest in
> MEC and would be prohibited from investing any
> additional funds into, or entering into any new
> transactions with, MEC without the approval of the
> minority MID Class A shareholders.
>
> MEC said it has extended the maturity date of its
> $40-million senior secured revolving credit
> facility with a Canadian chartered bank from Nov.
> 28 to March 16, 2009, subject to certain
> acceleration provisions. MEC incurred a fee of
> $1.75 million in connection with the extension of
> the loan.
>
> Initially, the proposal will give MEC a
> $50-million loan from MID for operations, and
> another $75-million loan from MID to fund the
> licensing of a potential slot-machine parlor at
> MEC-owned Laurel Park in Maryland.
>
> MID has extended to March 31, 2009, the maturity
> date of the existing bridge loan from an MID. MEC
> has said it would use “commercially reasonable
> efforts to sell or enter into joint ventures in
> respect of its assets, including its core
> racetrack assets.” Real-estate assets in
> California and Florida would be sold by MEC to MID
> for fair market value.
>
> The $75-million loan for Maryland operations
> includes $45 million to pay for a slots license,
> and $30 million to construct a temporary slots
> facility at Laurel. The Maryland legislature still
> hasn’t officially picked Laurel as a slots
> location, and if it does, local approvals will be
> necessary.
>
> “We are thrilled with this announcement,” Tom
> Chuckas, president and chief operating officer of
> the Maryland Jockey Club, said in a statement.“The
> full financial commitment from MI Developments
> will allow the Maryland Jockey Club to have the
> resources to pursue the (slot-machine) application
> and the strength to make Laurel Park the best
> possible facility for alternative gaming.”
>
> As for the real estate, MID will purchase for cash
> from MEC land in Aventura and Ocala, Fla.; Dixon,
> Calif.; additional acreage at the Palm Meadows
> Training Center in Florida; and MEC membership
> interest in—and land underlying—the company’s
> joint venture with Forest City Enterprises at
> Gulfstream Park.
>
> The “fair market” purchase price for the assets is
> $100 million to $120 million in total, MEC said in
> a release.
