Published:
July 23, 2009 03:37 pm EDT
A group of unsecured creditors have gone to court in Delaware, charging that racetrack owner Magna Entertainment Corp. fraudulently transferred more than $125 million to Frank Stronach-controlled companies before MEC filed for bankruptcy
.
The debtors claimed MI Developments, MEC’s parent and largest shareholder, “breached its fiduciary duties of good faith, honest governance, loyalty and care to MEC and its creditors by, among other wrongs, looting and engaging in self-dealing transactions to the detriment of the debtors.”
MI Developments said the suit is without merit and it intends to contest the allegations “vigorously.”
(With files from Harness Tracks of America)
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