Magna Entertainment seeks court OK of $7 million DIP loan increase

By Caroline Salls

Pittsburgh, Feb. 26 - Magna Entertainment Corp. requested court approval of an amendment that would extend the tranche 3 commitment on its debtor-in-possession credit agreement by $7 million to $33 million, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Magna will pay an arrangement fee of 3% of the $7 million of additional financing.

According to the motion, the additional funding will allow the company to support its operations through the effective date of its plan of reorganization.

The company has requested a March 3 hearing.

Magna, an Aurora, Ont.-based owner and operator of horse racetracks, filed for bankruptcy on March 5, 2009. Its Chapter 11 case number is 09-10720.

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