| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Magna Entertainment Corp. > News item |
MI Developments shareholder files complaint, opposes financing of Magna Entertainment
By Lisa Kerner
Charlotte, N.C., March 31 - Counsel for MI Developments Inc. shareholder Greenlight Capital, Inc. submitted a complaint to the Ontario Securities Commission seeking to ensure the company's compliance with applicable minority protection regulations prior to entering into transactions with its subsidiary, Magna Entertainment Corp.
A copy of the March 30 letter to the Commission was included in a schedule 13D/A filed on Tuesday with the Securities and Exchange Commission.
Greenlight applied for immediate relief and a hearing against MI Developments and its directors and officers, according to the letter.
The shareholder is asking for an order restraining MI Developments and its directors and officers from, among other things, advancing any further MI Development funds in connection with the loans announced by company on Nov. 26, 2008 and agreeing to any extensions or amendments of any loan agreement with Magna Entertainment or any of its subsidiaries.
Greenlight said since the spin-out of MI Developments in August 2003, the company has "has continuously sought ways to provide financial assistance" to Magna despite Magna's "serious financial troubles."
"Over the years, Greenlight and other MI Developments public shareholders have objected to these efforts by MI Developments to subsidize Magna Entertainment."
Greenlight beneficially owns 12.3% of the Aurora, Ont., real estate development company, the filing said.
Magna Entertainment owns and operates horse racetracks. It is also based in Aurora, Ont. It filed for bankruptcy on March 5 under Chapter 11 case number is 09-10720.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.