March 24, 2010

Greg Cross quoted in Baltimore Sun story on developments in the Magna bankruptcy

2 min

Venable partner Greg Cross was quoted in a March 24 Baltimore Sun story about the latest twist in the Magna Entertainment Corp. bankruptcy and what it could mean for the fate of Maryland’s Laurel Park, Pimlico Race Course and the Preakness horse race.

Magna had planned to sell the Maryland tracks at auction on March 25 but yesterday announced an agreement to sell the tracks to MI Developments (MID), Magna's parent company.

While the story says that many observers hail the deal as a way to save Maryland’s faltering horse racing traditions, the six groups planning to bid on the tracks have cried foul. The agreement must be approved by a bankruptcy judge.

In response to Magna’s plans to sell the tracks and concerns about the future of racing in Maryland and the fate of the Preakness, the Maryland General Assembly last year passed legislation giving the state the right to review and match any bid for the race. The state also had the authority to exercise a "right of first refusal" and acquire the tracks and Preakness through eminent domain.

While MID has not yet agreed to more stringent state covenants to guarantee the future of the Preakness, Venable’s Greg Cross, who represents the state in the Magna Bankruptcy proceedings, told the Sun that he expects the race will stay in Baltimore and that the legal protections approved by the legislature remain in place.

"There is no indication at this point that anything would be happening to the Preakness," Cross said.