There's not much room for purses in the scenario for Quebec racing sketched today in Montreal Superior Court
Trustee Yves Vincent of RSM Richter, the company overseeing the finances of Quebec racetrack operator Attractions Hippiques since it entered creditor protection last summer, said he expects the company to have a revenue surplus of $400,000 by the end of April. That's after four months with no live racing or purse payouts anywhere in the province.
Earlier in the day, Attractions Hippiques president Ian Wetherly said the projection for all of 2009 is $36 million of revenue from parimutuel betting and VLTs at the four tracks and $30 million in operating expenses. Of the remaining $6 million, about $3 million is committed to lenders for interest payments; leaving just $3 million for purses and capital costs.
Lawyer Jean-Philippe Gervais, representing Quebec horsemen, said in light of that evidence, "this company's going nowhere," and asked the court to immediately withdraw creditor protection.
That didn't happen, but the legal debate will resume Feb. 2, when the latest extension of creditor protection is due to expire.
To date, Attractions Hippiques has spent $1.4 million on professional fees since entering creditor protection last summer, including $365,000 in legal fees for its lenders, Vincent told the court. The company's in arrears on its rent at Hippodrome de Montréal by $825,000.
(Trot Insider exclusive by Paul Delean)