Bid withdrawn for Magna Entertainment Corp.

Apr 21, 2009 5:05 PM
Industry Insider by Ray Poirier | A controversial "stalking horse bid" for the assets of Magna Entertainment Corp. (MECA) by its principal financial lender, MI Developments Inc. (MID), has been withdrawn, according to an announcement Monday by the company.

The $195 million bid for some of Magna’s racetracks and real estate holdings drew the ire of "some of the parties in the MECA Chapter 11 process." But, MI Developments added that it still considered some of the assets as "very valuable and attractive" and would pursue the bankruptcy process.

Still to be resolved by the bankruptcy court are the parameters for the sale of some other assets, including the Maryland Jockey Club, operator of Pimlico and Laurel Race Course.

On Friday, the Maryland legislature passed a bill that attempts to keep Pimlico’s Preakness Stakes in the state regardless of who the new owners might be.