Magna Entertainment says it emerged from bankruptcy on Friday

By Lisa Kerner

Charlotte, N.C., April 30 - MI Developments Inc. announced that Magna Entertainment Corp.'s plan of reorganization became effective at 5:01 p.m. ET on Friday.

Unsecured creditors of Magna will receive $89 million in cash plus $1.5 million as a reimbursement for certain expenses in connection with the action, an MI Developments news release said.

Magna had filed an amended plan of reorganization and related disclosure statement providing for the transfer of the Maryland Jockey Club to MI Developments.

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 was increased to $89 million from $75 million.

Certain Magna assets have been transferred to MI Developments, including Santa Anita Park, Golden Gate Fields, Gulfstream Park (including Magna's interest in the Village at Gulfstream Park), the Maryland Jockey Club, Portland Meadows, AmTote International, Inc. and XpressBet, Inc., the release said.

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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