Balmoral Racing asks approval to select lead bidder for asset sale

By Mark Reccek

Bethlehem, Pa., Dec. 18 – Balmoral Racing Club, Inc. sough court approval to modify the bid procedures and select a lead bidder for the proposed sale of substantially all of its assets, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Northern District of Illinois.

Specifically, the company is seeking a stalking horse offer and the ability to set the minimum price for the marketing of additional bids for company assets.

According to the company, it will negotiate a break-up fee payable to the bidder if the court approves a higher offer at the auction, as well as a bid protection cushion in an amount to be added to the purchase price.

“Both the break-up fee and bid protection shall be in reasonable amounts consistent with the prevailing standards and practice in this district,” the motion said.

The company also said the break-up fee and bid protection will aid in inducing a stalking horse bidder to submit an offer for specific assets within the necessary time frame.

“Based on the interest of all parties involved and the substance of the discussions beginning at the auction and continuing to date, the debtors are cautiously optimistic that it will be able to submit to this court a proposed stalking horse offer,” the motion added.

As previously reported, the sale also includes the assets of Maywood Park Trotting Association, Inc.

A hearing on the request is scheduled for Dec. 22.

Balmoral is a Crete, Ill.-based racetrack operator. The company filed for bankruptcy on Dec. 24, 2014, under Chapter 11 case number 14-45711.

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