MONTREAL, April 8 /CNW Telbec/ - In the petition filed today with the
Quebec Superior Court, Attractions Hippiques has requested a 113-day extension
to its legal protection from its creditors. This period will be used to
conduct a sale of all assets, overseen by the Court and supervised by the
controller, RSM Richter. This is the process that has garnered support from
Attractions Hippiques' lenders.
All interested buyers will have to respect a precise schedule. The
deadline for submitting firm offers of purchase will be July 7, and subject to
final Court approval, the offer accepted will be approved on July 28.
Attractions Hippiques does not plan to make an offer on any of its assets.
In order to conserve the value of the improvements made at the Hippodrome
de Québec, valued at $26 million under a long-term lease, Attractions
Hippiques will continue its racing operations at this location. Until the sale
has been finalized, Attractions Hippiques will continue managing its Hippo
Clubs, as well as the revenues from its pari mutuel simulcast.
Once the horsemen's associations rejected RSM Richter's business plan,
which prompted the government to withdraw its support from the industry, the
Quebec government informed Attractions Hippiques that as soon as the company
was no longer under the protection of the Companies' Creditors Arrangement
Act, the 22% commission on the revenues from the VLTs at the gaming complexes
and racetracks in Gatineau, Quebec City Trois-Rivières and Montreal would no
longer be paid. Because the revenues from pari mutuel betting on races are not
enough to support the operation of the racetracks, maintain infrastructures
and provide purse money, the sale of the assets under the protection of the
law is the only viable option.
For further information:
For further information: Yves Vincent, FCA, RSM Richter Inc., (514)