MONTREAL, Oct. 2 /CNW Telbec/ - Attractions Hippiques has learned of the Quebec government's decision not to eliminate taxes on pari-mutuel bets, as stipulated in the restructuring plan submitted this week to the company's creditors. This decision, which is contrary to the practice in the rest of Canada, renders the proposed restructuring plan unviable.
Over the next few days, Attractions Hippiques, together with RSM Richter, the controller appointed by the court under the provisions of the Companies' Creditors Arrangement Act (CCAA), will review its options for dealing with theexcessive tax burden resulting from this decision. If no solution is found, Attractions Hippiques will be forced to proceed with the liquidation of its assets.
Attractions Hippiques' proposal was aimed at ensuring that its tax burden and treatment were similar to that of all other companies in Quebec and its competitors across Canada. It was not seeking any government assistance or support beyond this and had agreed to forego all revenues from video lottery machines.
Under the restructuring plan, racing would continue at the Quebec City racetrack, ensuring the survival of Quebec's horse-racing industry and saving the several hundred jobs associated with it.
SOURCE ATTRACTIONS HIPPIQUES
For further information: For further information: Ian Wetherly, President and chief operating officer, Attractions Hippiques, (514) 739-2741 ext. 2221