Maryland is galloping to pass legislation to avoid the potential loss of Pimlico Race Course and the Preakness Stakes, the Triple Crown horse race it hosts every May.
The state Senate on Saturday approved a bill that would allow Maryland to bid on Pimlico in a Section 363 auction run by bankrupt track owner Magna Entertainment Corp. Alternatively, the legislation clears the way for the Old Line State to claim Pimlico through eminent domain. The Maryland House of Delegates is expected to also pass the bill, the Baltimore Sun reports, although there are concerns about the viability of the plan.
Under one potential scenario, Maryland would purchase Pimlico, fellow Maryland racetrack Laurel Park and other assets and then sell them to a private entity that would preserve the state's horse-racing tradition. Financing such a transaction, however, could be difficult with the credit markets still tight.
Still, notwithstanding the legislation and Pimlico and Laurel's importance to Maryland -- the state has had racetracks since the 1600s and been the site of organized races since the 1700s, it says in court documents -- the Preakness may not be going anywhere. The Sun says at least four bidders want to keep the race at Pimlico, including Baltimore Orioles owner Peter Angelos and real estate developer Cordish Cos. (also a recent bidder for the Tropicana Casino & Resort in Atlantic City, N.J.). The 134th Preakness will be run May 16.
Magna wants to start the race for its assets on April 20, when Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware in Wilmington is set to consider bidding procedures for two sales. Under the proposed procedures for the assets including Pimlico, bids would be due July 8, with an auction following on July 30. Magna has not selected a lead bidder for the assets, which also include Santa Anita Park near Los Angeles as well as Thistledown in Ohio, Remington Park in Oklahoma City, Magna Racino near Vienna, Austria, and the operating rights of Portland Meadows in Oregon.
Magna's controlling shareholder, MI Developments Inc., is stalking-horse bidder for the other assets, which include Golden Gate Fields near San Francisco, Gulfstream Park in Florida and Lone Star Park near Dallas. MID has offered $195 million in cash, debt and assumed liabilities. Magna has proposed a July 8 deadline for rival bids for those assets and an auction on July 16. - David Elman
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