|Lone Star Park's Parent Company Files Bankruptcy, Track Officials Assure Operations, Upcoming Meet Will Not be Affected
On Thursday, March 5, Lone Star Park's parent corporation, Magna Entertainmet
Corp. (MEC) filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy
Court of the District of Delaware. According to the company, day-to-day
operations of the racetracks owned by MEC should not be affected.
Lone Star Park at Grand Prairie President and General Manager Drew Shubeck
released the following statement:
"Earlier today, Lone Star Park’s parent corporation Magna
Entertainment Corp. (MEC) and some of its subsidiaries announced that
they have filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy
Court for the District of Delaware. MEC and the affected subsidiaries
are seeking reorganization under Chapter 11 of the federal bankruptcy
code to address their current debt situation in such a way as to allow
them to emerge from the bankruptcy proceeding stronger and better equipped
to respond to future economic challenges.
"It is important to note that Lone Star Park is not among the parties
filing for Chapter 11 bankruptcy protection and will not be included in
the bankruptcy proceeding. As a result, none of Lone Star Park’s
accounts or assets will be frozen or negatively affected by this filing.
Accordingly, there should be no immediate implications for Lone Star Park,
our employees, horsemen, vendors or customers.
"We are proceeding with business as usual with our daily, off-season
simulcasting operations in the Post Time Pavilion and the preparations
for our 2009 Spring Thoroughbred Spring Meet that opens on Thursday, April
Additionally, on its website, MEC posted the following FAQ for horsemen:
Are horsemen affected by the Chapter 11 filing?
No. During the Chapter 11 restructuring process, MEC’s day-to-day
operations are expected to continue without interruption. We will continue
to provide the same opportunities to our horsemen as we always have. We
have taken a number of measures in and out of court to ensure that this
process does not interfere with our normal business operations.
Will I continue to receive my winnings?
Yes. The Chapter 11 filing should have no impact on our ability to pay
winnings to horsemen. We are required by law to keep a separate horsemen
account that is established solely for paying horsemen winnings. This
account will remain an account strictly for horsemen and continue to pay
the winnings due in the same manner as before the filing.
How will racing at MEC racetracks be affected by this?
MEC’s racetracks will continue to operate as usual. The Chapter
11 filing itself will not directly impact racing days or purses at any
of MEC’s racetracks.
Will I be able continue to use the stabling facilities at
MEC racetracks and training centers?
Yes. The Chapter 11 filing will have no impact on your ability to stable
at MEC facilities.
The Texas Horsemen's Partnership will continue to update this website
with any further developments that could impact our member horsemen.