Balmoral reaches stipulation with creditors to sell racetrack assets

By Kali Hays

New York, May 7 – Balmoral Racing Club, Inc. and Maywood Park Trotting Association, Inc. are seeking approval of a stipulation with certain judgment creditors for the sale of all racetrack assets, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Northern District of Illinois.

The judgment creditors include, Empress Casino Joliet Corp., Harrah’s Casino Cruises Joliet, Hollywood Casino-Aurora, Inc. and Elgin Riverboat Resort-Riverboat Casino, and together hold the largest unsecured claim against the debtors as a result of a $75 million judgment in their favor from a lawsuit related to the casinos’ impact on horse racing in Illinois.

Balmoral said it intends to pursue an appeal of the judgment in District Court, but all of the stipulation parties agree that “any mutually agreeable resolution requires, as an initial matter, either or both of the sale of the judgment and the racetracks’ assets and business,” according to the motion.

Under the stipulation, the debtors have agreed to actively pursue a sale of the judgment and the racetracks and all related racetrack assets and businesses and will provide the judgment creditors with “detailed, weekly, written status reports concerning negotiations with prospective purchasers.”

The judgment creditors have also agreed to refrain from seeking any dismissal or conversion of the bankruptcy cases or for the appointment of a trustee through June 30.

Though the parties “each recognize the possibility that any such purchase may be conditioned upon a global settlement,” all maintained their rights regarding any claims and future litigation.

Balmoral is a Crete, Ill.-based racetrack operator. The company filed for bankruptcy on Dec. 24 under Chapter 11 case number 14-45711.

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