Balmoral Racing and Maywood Park file bankruptcy in wake of judgment

By Caroline Salls

Pittsburgh, Dec. 26 – Balmoral Racing Club, Inc. and Maywood Park Trotting Association, Inc. filed Chapter 11 bankruptcy on Dec. 24 in the U.S. Bankruptcy Court for the Northern District of Illinois.

Balmoral chief operating officer and chief financial officer Randall Olech said in a statement filed with the court that the Chapter 11 cases were filed to obtain a stay of a more than $75 million judgment in favor of riverboat casinos awarded in a lawsuit related to the casinos’ impact on horse racing in Illinois.

Olech said the company believes it and Maywood can successfully restructure their obligations under the provisions of the Bankruptcy Code, and they intend to propose a plan of reorganization.

According to court documents, Balmoral has $10 million to $50 million in assets and $50 million to $100 million of debt.

The company’s largest unsecured creditors are

• Elgin Riverboat Resort – Riverboat Casino of Chicago, with a $26.04 million litigation/stayed judgment claim;

• Des Plaines Development LP of Chicago, with a $21.8 million litigation/stayed judgment claim;

• Hollywood Casino – Aurora Inc., based in Chicago, with a $17.36 million litigation/stayed judgment claim; and

• Empress Casino Joliet Corp., based in Chicago, with a $12.62 million litigation/stayed judgment claim.

World Wide Wagering, Inc. owns 100% of Balmoral and Maywood’s shares.

The company is represented by Adelman & Gettleman, Ltd.

Balmoral is a Crete, Ill.-based racetrack operator. The Chapter 11 case number is 14-45711.

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