Magna Entertainment Corp. (MEC) and some of its subsidiaries announced that they have filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
The largest horse track owner in the U.S., Lone Star Park's parent company, filed for Chapter 11 bankruptcy protection Thursday.
Drew Shubeck, Lone Star Park's president and general manager, stressed that the Grand Prairie park will not be included in Magna Entertainment's bankruptcy protection proceedings.
None of Lone Star Park’s accounts or assets will be frozen or negatively affected by this filing, Drew Shubeck said in a news release.
"There should be no immediate implications for Lone Star Park, our employees, horsemen, vendors or customers," Shubeck said. "We are proceeding with business as usual."
Magna Entertainment said it was unable to obtain new financing while supporting its existing debt.
MI Developments is a property-management company that is Magna's controlling shareholder -- as well as its largest secured creditor.
MI hopes to buy some of the racetrack company's assets for $195 million. Among the items are Magna's interest in Lone Star Park in Grand Prairie Texas.
Magna Entertainment will continue to operate while it reorganizes.
It has between $500 million and $1 billion in liabilities and more than $1 billion in assets.