Magna's disclosure statement approved; plan hearing set for April 20

By Lisa Kerner

Charlotte, N.C., March 26 - Magna Entertainment Corp.'s disclosure statement was approved, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing to confirm the company's plan of reorganization will be held on April 20.

On Tuesday, Magna announced that it filed an amended plan of reorganization and related disclosure statement providing for the transfer of the Maryland Jockey Club to parent company MI Developments Inc.

Maryland Jockey Club will form part of Magna's assets that are to be transferred to the parent company under the amended plan.

As previously reported, under the amended plan, MI Developments will pay the estimated $23 million to $25 million of secured and unsecured claims of Maryland Jockey Club's creditors in return for the transfer.

Also, the amount to be paid by MI Developments to Magna's non-Maryland Jockey Club unsecured creditors will be increased to $89 million from $75 million.

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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