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Meadows race operator files for Chapter 11
Friday, June 26, 2009

MEC Pennsylvania Racing Services, the company that operates the racing side of The Meadows Racetrack & Casino in Washington County, has filed for bankruptcy protection.

Neither racing nor slots gambling will be interrupted, a casino spokesman said.

"It's business as usual," said David La Torre.

MEC filed its initial Chapter 11 bankruptcy petition last week in U.S. Bankruptcy Court in the Delaware, along with a list of creditors 230 pages long.

A Chapter 11 filing allows a company time to reduce its debts and reorganize; it's different than Chapter 7 bankruptcy, in which a company stops operating and begins to liquidate.

MEC's parent company used to own The Meadows, but sold it in 2005 to Millennium Gaming Inc. and Oaktree Capital Management. Millennium then hired MEC to operate the racetrack.

The parent company, Magna Entertainment Corp., likewise filed for bankruptcy protection in March, with a list of creditors that includes the Maryland Thoroughbred Horsemen's Association and the New York Racing Association.

Magna Entertainment, in turn, is the subsidiary of Magna International Inc., a Canadian automotive supplier.

Bill Toland can be reached at btoland@post-gazette.com or 412-263-2625.
First published on June 26, 2009 at 12:00 am