Balmoral creditor trustee files lawsuit, claims right to racing money

By Caroline Salls

Pittsburgh, Feb. 20 – Balmoral Racing Club, Inc. creditor trustee Barry A. Chatz filed a lawsuit Tuesday seeking the transfer of $5.32 million the Illinois Harness Horsemen’s Association (IHHA) received from horse racing since Dec. 31, 2015, according to a complaint filed with the U.S. Bankruptcy Court for the Northern District of Illinois.

Neither the IHHA, any of its members, the Hawthorne Race Course, Inc., Suburban Downs, Inc. or any other person or entity has any legal right to any of the money previously associated with unpaid pari-mutuel tickets held by the Balmoral Racing Club, Inc. or Maywood Park Trotting Associations, Inc. bankruptcy estates,” Chatz said in the complaint.

According to the complaint, a dispute exists regarding rights to the money from the unpaid tickets.

The trustee said this money can be transferred to an unrestricted account for the benefit of all of the Balmoral debtors’ Chapter 11 plan beneficiaries.

In addition, Chatz said the IHHA is obligated by contract “to transfer to the debtors all money the IHHA has received, and will receive, directly or indirectly, from horse racing, since Dec. 31, 2015, until the transferred amount equals $5,315,510.”

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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