According to a report by the Courier-Journal, Ontario-based thoroughbred racetrack owner Magna
Entertainment Corp. has a loan payment due this week. If the payment is not made, the company may have to file for bankruptcy.
With MI Developments Inc. -- a real estate company affiliated with Stronach and Magna's controlling shareholder -- having recently rejected a re-organization plan, provisions have kicked in. One of the provisions would see Magna forced to repay debts sooner. One of those debts include a $40 million line of credit, which is due Thursday, March 5.
According to the article, unless it can obtain waivers or find a way to raise the money, Magna won't be able to make the payment. The company made the statement in an SEC filing.
Click here to read the Courier-Journal article in its entirety.
(With files from the Courier-Journal)