New York Racing Association Asks Judge to Implement Bankruptcy Exit Plan 11/09/2008 |
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New York Racing Association Inc., the operator of three horseracing tracks since 1955, asked a judge to help it exit bankruptcy, saying it faces a $4 million payment to a pension group if the reorganization plan is delayed.
NYRA said in court documents filed yesterday in U.S. Bankruptcy Court in Manhattan that if it fails to emerge from court protection by Sept. 15, it will have to make the payment to the Pension Benefit Guaranty Corporation, an arm of the U.S. government that insures benefits for private pension plans.
The racing company, originally scheduled to emerge from bankruptcy June 30, asked Judge James Peck to approve its settlement with New York State even though the agreement isn't fully documented and a video-lottery terminal operator for its Aqueduct track hasn't been chosen.
``Negotiation of such documentation has been complex and time-consuming, in part due to delays associated with the selection of an entity to construct and manage a video lottery terminal,'' NYRA said.
NYRA's plan to reorganize, approved by the court April 28, can't be implemented until a judge approves the settlement. NYRA has asked for a hearing tomorrow to consider its request.
NYRA filed for bankruptcy in November 2006. In August, it delayed its exit a second time and set Sept. 2 as its planned date to emerge.
Under the Chapter 11 reorganization, New York state agreed to provide NYRA with $105 million, to be repaid with revenue from video-lottery terminals at the tracks. Of the state's funding, $75 million will cover NYRA's bankruptcy claims and $30 million will go toward operating costs.
The case is In re The New York Racing Association Inc., 06- 12618, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
(Source: Bloomberg)
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