MI Developments Inc. yesterday stated that its previously-announced plans which would have seen itself separate from Magna Entertainment Corp. have been cancelled.

MID, the property management spinoff of Magna International, said it was unlikely that it would be able to arrange the new debt financing associated with the proposal given the turmoil in the financial markets and the automotive industry.

"Although the proposal contemplated the possibility that the new debt could be arranged after closing, MID does not believe that it would be prudent to raise the new debt until such time as the ongoing uncertainty in the automotive industry has been resolved," the company said in a statement.

To read an Associated Press article regarding the announcement, click here.

(With files from Associated Press)