AURORA, ON, April 26 /PRNewswire-FirstCall/ - MI Developments
Inc. ("MID") (TSX: MIM.A, MIM.B; NYSE: MIM) today announced that
the Plan of Reorganization in respect of Magna Entertainment Corp.
("MEC") and certain of its subsidiaries, jointly proposed by MEC,
MID and the Official Committee of Unsecured Creditors of MEC (the
"Creditors Committee"), has been confirmed by order of the United
States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The
original litigation settlement, to be implemented by the Plan, was
announced by MID on January 11,
2010.
"We are thankful that the bankruptcy process is drawing to a
close and we have recovered value for our loans," stated
Dennis Mills, MID's Vice-Chairman
and Chief Executive Officer. "As we proceed to take ownership of
the acquired assets, we look forward to implementing individual
plans for each asset to improve and maximize their economic
values."
Under the terms of the Plan, in exchange for the dismissal with
prejudice of the action commenced by the Creditors Committee in the
Bankruptcy Court and releases of MID, its affiliates, and all
current and former officers and directors of MID and MEC and their
respective affiliates, the unsecured creditors of MEC will receive
US$89 million in cash plus
US$1.5 million as a reimbursement for
certain expenses in connection with the action.
In addition, under the terms of the Plan and in full
satisfaction and release of all MID's claims against the MEC and
its debtor subsidiaries, certain assets of MEC will be transferred
to MID, including among other assets, Santa
Anita Park, Golden Gate Fields, Gulfstream Park (including
MEC's interest in The Village at Gulfstream Park, a joint venture
between MEC and Forest City Enterprises, Inc.), The Maryland Jockey
Club, AmTote International, Inc. and XpressBet, Inc.
With respect to the non-real estate related MEC assets that will
be transferred to MID as contemplated by the Plan, MID intends to
later announce certain forbearance terms or funding limitations or
other restrictions to be approved by the Special Committee with
respect to any future investments by MID in, or funding to be made
by MID in respect of, such assets.
The Plan will not become effective unless and until the
conditions set forth in the Plan have been satisfied or waived,
including the receipt by MID and MEC of regulatory approvals
pursuant to the Plan. MID expects the effective date of the Plan to
occur on April 30, 2010.
About MID: MID is a real estate operating company engaged
primarily in the acquisition, development, construction, leasing,
management and ownership of a predominantly industrial rental
portfolio leased primarily to Magna International Inc. and its
automotive operating units in North
America and Europe. MID
also acquires land that it intends to develop for mixed-use and
residential projects. For further information about MID, please
visit www.midevelopments.com or call 905-713-6322. At www.sedar.com
and www.sec.gov you can also find MID's filings.
Forward-Looking Statements: This press release may contain
statements that, to the extent they are not recitations of
historical fact, constitute "forward-looking statements" within the
meaning of applicable securities legislation, including the United
States Securities Act of 1933 and the United States Securities
Exchange Act of 1934. Forward-looking statements may include, among
others, statements relating to the MEC Chapter 11 Proceeding and
MID's participation therein and statements regarding MID's future
plans, goals, strategies, intentions, beliefs, estimates, costs,
objectives, economic performance or expectations, or the
assumptions underlying any of the foregoing. Words such as "may",
"would", "could", "will", "likely", "expect", "anticipate",
"believe", "intend", "plan", "forecast", "project", "estimate" and
similar expressions are used to identify forward-looking
statements. Forward-looking statements should not be read as
guarantees of future events, performance or results and will not
necessarily be accurate indications of whether or the times at or
by which such future performance will be achieved. Undue reliance
should not be placed on such statements. Forward-looking statements
are based on information available at the time and/or management's
good faith assumptions and analyses made in light of our perception
of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
in the circumstances, and are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are
beyond MID's control, that could cause actual events or results to
differ materially from such forward-looking statements. Important
factors that could cause such differences include, but are not
limited to, the risks and uncertainties inherent in the MEC Chapter
11 Proceeding, including the success or timing of the
implementation of the Joint Plan of Affiliated Debtors, the
Official Committee of Unsecured Creditors, MID and MI Developments
US Financing Inc., the success or timing of the auction of MEC's
assets, and the outcome any proceedings related to the MEC Chapter
11 Proceeding or MID's involvement therein (including as a result
of any objections raised with the Bankruptcy Court), and the risks
set forth in the "Risk Factors" section in MID's Annual Information
Form for 2009, filed on SEDAR at www.sedar.com and attached as
Exhibit 1 to MID's Annual Report on Form 40-F for the year ended
December 31, 2009, which investors
are strongly advised to review. The "Risk Factors" section also
contains information about the material factors or assumptions
underlying such forward-looking statements. Forward-looking
statements speak only as of the date the statements were made and
unless otherwise required by applicable securities laws, MID
expressly disclaims any intention and undertakes no obligation to
update or revise any forward-looking statements contained in this
press release to reflect subsequent information, events or
circumstances or otherwise.
SOURCE MI Developments Inc.