November 20, 2009
Special Counsel Benjamin D. Feder was quoted in a Bloomberg article regarding a dispute over gambling rights between Magna Entertainment Corp. and Joseph DeFrancis, one of a group of former owners of the Pimlico Race Course and Laurel Park.
Magna, the Canadian firm that presently owns the Maryland tracks, filed for Chapter 11 on March 5, 2009. A plan to auction the race course and park early next year was approved by Judge Mary F. Walrath on October 14, 2009.
Allegedly, when Mr. DeFrancis and the other former owners sold their controlling interest to Magna, they entered into a deal with the company to retain the rights to put slot machines and alternative forms of gambling at the racetracks. Magna and the former owners agreed to split the proceeds from any
gambling development. Mr. DeFrancis opposes the cancellation of these rights as part of Magna’s Chapter 11 proceedings. Mr Feder represents Mr. DeFrancis and the other former owners.
“‘These are potentially extremely valuable rights,’ attorney Benjamin Feder said today during a hearing in Wilmington, Delaware. ‘Most likely, the most valuable assets’ associated with Pimlico.”
A similar article on this matter was published in Stockwatch.