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Magna DIP loan amended to increase availability, extend maturity
By Caroline Salls
Pittsburgh, Aug. 26 - Magna Entertainment Corp.'s debtor-in-possession facility has been conditionally amended to increase the principal amount available to up to $66.4 million from up to $38.4 million and extend the maturity to April 30, 2010 from Nov. 2, according to an MI Developments Inc. news release.
The DIP financing is being provided to Magna by a wholly owned subsidiary of MI Developments.
Under the amended facility, Magna must market and sell all of its assets, including seeking stalking horse bidders, conducting auctions and obtaining sales orders from the U.S. Bankruptcy Court for the District of Delaware.
MI Developments said it does not intend to bid on Magna's AmTote International, Inc., Dixon, Lone Star Park, Ocala, Portland Meadows, Remington Park, Thistledown or XpressBet, Inc. assets.
However, MI Developments said it is continuing to evaluate its alternatives in connection with Magna's Golden Gate Fields, Gulfstream Park, Maryland Jockey Club and Santa Anita Park, assets, which may include entering into a stalking horse purchase agreement for one or more of those assets if Magna receives no other acceptable stalking horse bids.
According to the release, no advances will be made before Oct. 1 under the DIP financing.
MI Developments said the amended facility is subject to the Ontario Securities Commission having held a hearing regarding MI's ability to rely on exemptions under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions and rendering a decision in favor of MI Developments, as well as bankruptcy court approval of the amendments.
Magna, an Aurora, Ont.-based owner and operator of horse racetracks, filed for bankruptcy on March 5. Its Chapter 11 case number is 09-10720.
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