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Derby Time

Make the jump to get my horse-by-horse analysis of the 135th running of the Kentucky Derby along with selections for what appears to be a wide-open classic.

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Mike Hindman Leads the Pack

There apparently will be racing at Lone Star Park this season, but as Mike pointed out last week, there is definitely trouble in Grand Prairie. Mike reported this morning that Magna Entertainment Corp.  has filed a motion to put the lease to LSP up for auction April 3. The process will actually start April 3, but it appears that the actual auction will take place on July 16.

This should not impact the start of the Spring Thoroughbred season, which begins April 9, but its definitely looking line LSP is going through a time of transition that could take it into very uncertain waters. In this economy, I don’t think horse tracks are going to be seen as really attractive investments.

Lone Star Park On the Block?

Magna Entertainment (MEC), owner of the rights to conduct racing at Lone Star Park, has filed a motion in Delaware bankruptcy court seeking permission to auction off it’s interest in LSP on April 3.

Earlier this week, the bankruptcy judge rejected a proposed $62.5 million loan from MI Developments against bondholder opposition. The court approved a loan for $13 million instead.

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The “Stalking Horse” at Lone Star

My post earlier this week about the Chapter 11 Bankruptcy filing by Magna Entertainment Corp., owner of the rights to conduct racing at Lone Star Park, was met with a rapid response from the LSP brass who advise that:

“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.”

Great news for racing fans, including your’s truly. The meet will go on and tickets go on sale beginning this Monday.

But while there “should be no immediate implications for Lone Star Park” (and I’m not sure how that’s any different than my statement that the bankruptcy “could” threaten the meet, but whatever…) and it’s techically true that LSP isn’t a part of the bankruptcy, it doesn’t look like Lone Star will be completely immune from the fallout of it’s parent company’s bankruptcy according to Dallas bankruptcy and corporate attorney Darrell Cook.

Lone Star will proceed with business-as-usual subject to a so-called “stalking horse” arrangement with it’s largest secured creditor, MI Developments (which also happens to be MEC’s controlling shareholder), but ownership of Lone Star could change hands in the coming months.

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Lone Star Park: “We’re Racing”

Just heard from Lone Star Park spokesman Dan Leary, who forwarded along a statement from the race track  about the company’s Chapter 11 filing on Thursday. The Mighty MJH opined yesterday on how the bankruptcy filing could impact the racing season.

According to the statement, it won’t. Lone Star is apparently not part of the bankruptcy filing. Tickets will go on sale Monday for the spring season, which opens April 9.  The text of the statement, which should be attributed to LSP  President Drew Schubeck, follows:

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Big Trouble at Lone Star Park

Magna Entertainment Corp., which owns the lease to conduct racing at Lone Star Park, filed for Chapter 11 Bankruptcy today.

LSP’s 2009 race meet is set to begin in on April 9, but this development could prevent that from happening.

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