Indianapolis Downs noteholder objects to exclusivity extension request

By Lisa Kerner

Charlotte, N.C., Aug. 15 - Indianapolis Downs, LLC second- and third-lien noteholder Fortress Credit Opportunities Advisors LLC and its affiliates filed an objection to the company's motion for an order extending its exclusive periods to file and solicit votes on a plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, on Aug. 1 Indianapolis Downs asked the court to extend its exclusive filing period to Dec. 5 from Aug. 5 and its solicitation period to Feb. 1, 2012 from Oct. 4, due mainly to the financially complexity of its pre-petition capital structure and the questionable valuation of the business. A hearing is set for Aug. 26.

Fortress, in its motion, said the debtors' cases are neither large nor complex and said it also believes Indianapolis Downs fails to show cause for requesting the extension.

According to Fortress, the debtors "are slowplaying the Chapter 11 Cases for the benefit of Ross Mangano, the family trusts (the "Oliver Trusts") that he serves, and other related insider entities."

Fortress points to the fact that it took the debtors six months to revise February business plan as an example, according to the filing.

Mangano, the filing said, currently serves, among other positions, as the chief executive officer of the debtors; the chairman of the board of managers of Indianapolis Downs (there are only two board members); the sole director of debtor IDCC; the trustee of the Oliver Trusts; and the general partner of Troon & Co., a partnership between Mr. Mangano and the Oliver Trusts that holds about $40 million of unsecured promissory notes issued by the debtors.

Indianapolis Downs, a Shelbyville, Ind., racetrack, off-track betting and gaming company, filed for bankruptcy on April 7. The Chapter 11 case number is 11-11046.

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