AURORA, ON, April 30 /PRNewswire-FirstCall/ - MI Developments
Inc. ("MID") (TSX: MIM.A, MIM.B; NYSE: MIM) today announced that
the Plan of Reorganization ("Plan") 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 become
effective as of 5:01 p.m. Eastern Daylight
Time on April 30, 2010. The
original litigation settlement, to be implemented by the Plan, was
announced by MID on January 11,
2010.
"With the closing of the bankruptcy process, MID has
substantially enhanced its real estate portfolio," stated
Dennis Mills, MID's Vice-Chairman
and Chief Executive Officer. "Going forward, MID is determined to
work with the racing industry and local regulators to develop
business models that will result in sustainable returns for each of
our racing, gaming and real estate assets."
Under the terms of the Plan, in exchange for the dismissal with
prejudice of the action commenced by the Creditors Committee in
the United States Bankruptcy Court
for the District of Delaware (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 MEC and its
debtor subsidiaries, certain assets of MEC have been transferred to
MID as of the effective date, 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, Portland Meadows,
AmTote International, Inc. and XpressBet, Inc. Certain of these
assets remain subject to ongoing regulatory approval processes.
With respect to the non-real estate related MEC assets that have
been transferred to MID, 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.
For further information about this press release, please contact
Dennis Mills, MID's Vice-Chairman
and Chief Executive Officer, at 905-726-7614.
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 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.