The Quebec government's refusal to grant concessions sought by Attractions Hippiques makes its restructuring plan "unviable," company president Ian Wetherly said
today.
Wetherly said the company and trustee RSM Richter will spend the next few days reviewing its options in light of the government's announcement.
"If no solution is found, Attractions Hippiques will be forced to proceed with the liquidation of its assets."
He said the plan would have maintained live racing at Sulky Quebec, ensuring the survival of horseracing in the province while saving several hundred jobs.
From a projected $24 million in revenues in 2010, the company¹s plan had budgeted $2 million for purses, a total decried by horsemen as woefully inadequate. In 2007, purses in Quebec totalled $20.7 million.
Attractions Hippiques, which registered an operating loss of $16.2 million in 2007, has been in creditor protection since the summer of 2008 and has discontinued live racing at all tracks but Sulky Quebec.
The restructuring plan it proposed last month hinged on the government agreeing to turn over all the provincial tax collected on parimutuel bets (about $10.5 million last year) and amending legislation to allow the company to process simulcast bets throughout the province while providing live racing at a single track.
(Trot Insider exclusive by Paul Delean)
Related Story
Bad News For Attractions Hippiques