Hotchkis and Wiley investigates some MI Developments transactions

By Lisa Kerner

Charlotte, N.C., March 6 - A group of MI Developments Inc. shareholders led by Hotchkis and Wiley Capital Management, LLC hired counsel to investigate whether claims should be brought against the company's directors in connection with "transactions with insiders to the detriment of the corporation," a schedule 13D/A filed with the Securities and Exchange Commission said.

Hotchkis and Wiley beneficially owns 5,305,000 shares, or 11.5%, of the Aurora, Ont., real estate development company.

As previously reported, in February MI Developments said it doubts it can arrange the debt financing that was part of its reorganization plan due in part to current economic conditions. The company abandoned its planned reorganization, accelerating loans owed to the company by Magna Entertainment Corp.

Under the proposed reorganization, Magna Entertainment entered into an agreement with controlling shareholder MI Developments and entities affiliated with Magna chairman and chief executive officer Frank Stronach for transactions including the spinoff of Magna Entertainment to MI Developments' existing shareholders.

Magna Entertainment owns and operates horse racetracks. It is also based in Aurora, Ont.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.