Magna Entertainment hires Miller Buckfire to explore strategic alternatives

By Caroline Salls

Pittsburgh, Nov. 6 - Magna Entertainment Corp. has hired Miller Buckfire & Co. LLC as its financial adviser and investment banker to review and evaluate its strategic alternatives, including asset sales and financing and balance sheet restructuring opportunities, according to a company news release.

The company said Miller Buckfire will also help it identify, manage and execute its asset sales program and possible joint venture transactions.

"Although MEC has a strong asset base, we remain burdened with far too much debt and interest expense," chairman and chief executive officer Frank Stronach said in the release.

"Our previously announced debt elimination plan has been negatively affected by the weak real estate and credit markets, which have impacted our ability to sell non-core assets.

"As a result, we are evaluating MEC's core operations with a view to possibly selling or joint venturing one or more of MEC's core racetracks in order to strengthen MEC's balance sheet and liquidity position."

Magna Entertainment is an Aurora, Ont., owner and operator of horse racetracks.

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