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Santa Anita Park owner files for bankruptcy protection

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Racetrack operator Magna Entertainment Corp., whose properties include Santa Anita Park in Arcadia, filed for bankruptcy protection today -- a move investors had been expecting for weeks.

The money-losing Canadian company, based in Aurora, Ontario, said it would seek to reorganize while also selling certain assets (though not Santa Anita) to its controlling shareholder.

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Magna is North America’s biggest racetrack owner. Its properties include Gulfstream Park in Florida, Maryland’s Pimlico Race Course and Golden Gate Fields in Berkeley.

‘Simply put, MEC has far too much debt and interest expense,’ Frank Stronach, the company’s chief executive, said in a statement. ‘MEC has previously pursued numerous out-of-court restructuring alternatives but has been unable to complete a comprehensive restructuring to date due, in part, to the current economic recession, severe downturn in the U.S. real estate market and global credit crisis.

‘This is a voluntary filing intended to utilize a Chapter 11 process that will allow us to continue to operate the business uninterrupted while we implement a reorganization in a court-supervised environment. We expect that all employees, customers and horsemen will continue to be paid in the normal course along with all post-petition vendor obligations,’ Stronach said.

As part of its reorganization plan, Magna said it agreed to sell its interests in Golden Gate Fields, Gulfstream Park and other assets to its largest shareholder, MI Developments -- which also is chaired by Stronach. The sales could be canceled if other bidders emerge for the properties.

Amid dwindling on-track attendance at racetracks in general, Santa Anita has been trying to boost attendance by offering free admission on Fridays -- along with $1 hot dogs and $1 beer, my colleague Eric Sondheimer reported last month.

-- Tom Petruno

Photo: A race at Santa Anita in January. Credit: Lori Shepler / Los Angeles Times

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