According to a report by The Globe & Mail, in an Ontario Securities Commission hearing today, minority owners of MI Developments accused the company of improperly making loans to subsidiary Magna Entertainment Corp.
, the troubled racetrack operator which is currently in bankruptcy protection.
The minority shareholders -- several U.S. hedge funds led by Greenlight Capital Inc. -- have also claimed that MEC is "obsessed" with keeping them out of any shareholder voting process.
According to the report, the hedge funds have alleged that MID is trying to buy assets from MEC without proper approval from minority shareholders; and that at least one hedge fund lawyer has stated that the transactions could be in violation of insider trading/tipping regulations.
Click here to the read The Globe & Mail article in its entirety.
(With files from The Globe & Mail)