On Monday, September 14, MI Developments Inc. announced that the Ontario Securities Commission dismissed claims made by certain MID Class 'A' shareholders challenging MID's ability to rely on certain exemptions from the requirements to obtain minority shareholder approval
and formal valuations under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions in respect of transactions with Magna Entertainment Corp.
The OSC indicated that it intends to issue reasons for the dismissal in due course.
As a result of the dismissal of the applications by the OSC, the amendments to the secured debtor-in-possession financing facility being provided by a wholly-owned subsidiary of MID to MEC and certain of its subsidiaries announced on September 14, 2009 will come into effect subject to MEC obtaining approval of the U.S. Bankruptcy Court in Delaware to such amendments.
Under the amended DIP facility, MEC must use its best efforts to market and sell all of its assets. With respect to Golden Gate Fields, Gulfstream Park, Maryland Jockey Club and Santa Anita Park, MID will continue to evaluate all of its alternatives, which may include MID entering into a stalking horse purchase agreement for one or more of such assets in the event that MEC receives no other stalking horse bids acceptable to MEC.
Dennis Mills, vice chairman and chief executive officer, stated, "We are pleased with the OSC's decision to dismiss the applications. Our principal focus regarding MEC needs to be on the Chapter 11 process and, with this matter behind us, we will continue to work hard to evaluate all opportunities to preserve the value of our secured loans to MEC and certain of its subsidiaries."
(With files from MID)