According to a report on Bloomberg.com, United States bankruptcy judge Mary Walrath today ruled that Frank Stronach will have to face allegations that he utilized false loans in attempt to stop his horse racing tracks from being sold

in order to reimburse Magna Entertainment Corp. bondholders.

Magna was seeking to have a lawsuit filed by junior creditors tossed out of court.

The lawsuit claims that the said bondholders will not be able to obtain any of the money which is owed to them.

The report states that Stronach-affiliated companies made $375 million in loans to Magna.

Click here to the read the Bloomberg.com article in its entirety.

(With files from Bloomberg.com)