Magna Entertainment looks to sell Remington Park for $80.25 million

By Caroline Salls

Pittsburgh, Aug. 13 - Magna Entertainment Corp. requested court approval to hold an auction in connection with the proposed $80.25 million sale of its Remington Park racetrack, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Global Gaming RP, LLC is the stalking horse bidder. If Global Gaming is not the high bidder at auction, Magna will pay it a $1.61 million break-up fee and reimburse up to $500,000 of its sale-related expenses.

The stalking horse bidder has paid an $8.03 million deposit.

Competing bids are due by 5 p.m. ET on Sept. 3, and must equal the stalking horse bid plus the amount of the termination payments and a $250,000 overbid amount.

Subsequent bids at auction must be in minimum increments of $250,000.

All bids must include a 10% deposit.

The auction will be held on Sept. 8, and the sale hearing is scheduled for Sept. 14.

The company has asked the court to schedule the bid procedures hearing for Aug. 26.

Magna, an Aurora, Ont.-based owner and operator of horse racetracks, filed for bankruptcy on March 5. Its Chapter 11 case number is 09-10720.

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