Indianapolis Downs' proposed asset sale draws Oliver parties objection

By Jim Witters

Wilmington, Del., Oct. 11 - Indianapolis Downs, LLC's planned sale of substantially all of its assets to Centaur Acquisition, LLC, drew an objection from a group known as the Oliver parties, according to documents filed Oct. 11 with the U.S. Bankruptcy Court for the District of Delaware.

Centaur, an affiliate of Centaur Holdings, LLC, has agreed to pay $500 million plus $1, which met the minimum threshold established in a restructuring term sheet and restructuring support agreement entered into by the debtors, creditor and debtor-in-possession lender Fortress Credit Opportunity Advisors LLC and an informal committee of holders of pre-petition second-priority notes.

Centaur Holdings, LLC owns the debtors' only Indiana racino competitor, Hoosier Park, LP.

The debtors' second amended plan of reorganization outlined two paths toward restructuring: a sale or a recapitalization.

"As set forth in the sale motion, the sale will be consummated through the plan. Along those lines, the effective date of the plan is to be the date of closing of the sale transaction," the filing states.

The Oliver parties claim:

• The plan was not proposed in good faith and by legal means;

• The plan is not feasible, because the effective date is contingent on several factors, including regulatory approval;

"The uncertainty of these contingencies and the potential for a lengthy time period between confirmation and the effective date creates a material likelihood that confirmation is likely to be followed by the need for further restructuring," the filing states;

• Centaur cannot be deemed to have acted in good faith; and

• The debtors cannot reject the asset purchase agreement with Troon & Co.

The Oliver parties include: Ross J. Mangano, individually and as the trustee of the Jane C. Warriner Trust dated Feb. 26, 1971, the J. Oliver Cunningham Trust dated Feb. 26, 1971, and the Anne C. McClure Trust dated Feb. 26, 1971; Troon & Co.; John C. Warriner; Oliver Estate, Inc.; and Oliver Racing, LLC.

The sale hearing is scheduled for Oct. 19.

Indianapolis Downs, a Shelbyville, Ind., racetrack, off-track betting and gaming company, filed for bankruptcy on April 7, 2011. Its Chapter 11 case number is 11-11046.

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