Attractions Hippiques granted creditor protection



    MONTREAL, June 26 /CNW Telbec/ - Attractions Hippiques has obtained court
approved protection under the Companies' Creditors Arrangement Act in order to
protect itself from its creditors. RSM Richter Inc. was appointed by the court
to supervise the company's ongoing operations for an undefined period of time.
Attractions Hippiques is seeking the time it needs to restructure its
operations in light of the impasse that Loto-Québec and the Quebec government
have forced it into and to protect itself from lawsuits such as the recent
demand by the Association du trot et amble du Québec (ATAQ) or other claims by
some of its creditors.
    Attractions Hippiques recently issued a legal demand to Loto-Québec
asking the government agency to provide compensation and rectify the situation
immediately.
    The absence of a Ludoplex gaming hall at the new racetrack that was to be
built north of Montreal has deprived Attractions Hippiques of $20 million in
annual revenues from the 22% commission on the 1,300 video lottery terminals
that would have been managed and operated there by Loto-Québec. The financial
losses caused by the poor performance of video lottery terminals (VLTs)
operated by Loto-Quebec at the Trois-Rivières and Quebec City Ludoplexes have
also affected Attractions Hippique's finances. These VLTs have generated a
scant 30% of the forecasted revenues. In fact, 60% of the revenues stemming
from Loto-Québec's VLTs were supposed to pay the purses in the horse races, as
stipulated in the agreement. Given the absence of these funds, Attractions
Hippiques cannot fulfill its obligations.
    Attractions Hippiques will be presenting "live" racing programs for an
indefinite period at the Sulkys in Trois-Rivières, Quebec City and Gatineau
(Aylmer). Only the program at the Montreal race track is suspended at this
time. Presentation of simulcast races will continue as normal at the
racetracks in Montreal, Trois-Rivières, Quebec City and Gatineau, as well as
in its network of Hippo Clubs.
    Attractions Hippiques demands that Loto-Québec respect its commitments so
that horse racing activities in Quebec can return to normal as soon as
possible. The success of this industry depends on the construction of a race
track and a Ludoplex north of Montreal, as stipulated in the call for tenders
won by Attractions Hippiques in October 2005, as well as urgent and essential
changes to ensure that the Ludoplexes in Trois-Rivières and Quebec City are
profitable.




For further information:

For further information: Benoit Gingues, CA, RSM Richter Inc., (514)
934-3514; Yves Vincent, FCA, RSM Richter Inc., (514) 934-3454,
Yvincent@rsmrichter.com

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ATTRACTIONS HIPPIQUES

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