MI Developments announces termination of stalking horse bid for Magna Entertainment assets and amendments to DIP loan



    AURORA, ON, April 20 /CNW/ - MI Developments Inc. (MID) (TSX: MIM.A,
MIM.B; NYSE:   MIM) today announced that it and Magna Entertainment Corp. (MEC)
have agreed to terminate MID's stalking horse bid to purchase certain of MEC's
assets that had been previously made in the context of MEC's petition for
reorganization under Chapter 11 of the United States Bankruptcy Code. Although
the stalking horse bid has been terminated, MID will continue to evaluate
whether to bid on MEC assets during the course of the Chapter 11 sales
process.
    Dennis Mills, MID's Vice-Chairman and Chief Executive Officer, stated,
"MID's principal concern with respect to the MEC Chapter 11 process is to
maximize our recovery on our secured loans to MEC. We made our stalking horse
bid because we believe that MEC owns some very valuable and attractive assets.
Although we continue to be interested in acquiring assets from MEC, we have
agreed to withdraw our stalking horse bid in response to objections raised by
a number of parties in the MEC Chapter 11 process and with the intent of
expediting that process. As the process moves forward, MID will continue to
evaluate all opportunities to preserve the value of our secured loans to MEC,
which may include MID bidding for certain of MEC's assets."
    MID also announced that the terms of the debtor-in-possession financing
facility being provided to MEC by a wholly-owned subsidiary of MID (the MID
Lender) have been amended to, among other things:

    
    (i)   extend the maturity from September 6, 2009 to November 6, 2009 in
          order to allow for a longer marketing period in connection with
          MEC's asset sales;

    (ii)  reduce the principal amount available from US$62.5 million to
          US$38.4 million, with the reduction attributable to the fact that
          interest on the pre-petition indebtedness owed by MEC and its
          subsidiaries to the MID Lender will accrue during the Chapter 11
          process rather than being paid currently in cash; and

    (iii) provide that MEC has until the week of May 4, 2009 to file a motion
          on the bid procedures relating to the asset sales.
    

    The final terms of the debtor-in-possession financing facility are
scheduled to be considered by the Bankruptcy Court on April 20, 2009.
    The Board of Directors of MID approved terminating the stalking horse bid
and amending the financing facility after considering, among other things, a
favourable recommendation from a Special Committee of independent directors.
    The restructuring of MEC under the protection of Chapter 11 is subject to
certain material conditions, some of which are beyond MEC's and MID's control.
There is no certainty with regard to how long the chapter 11 proceedings or
the process for the marketing and sale of the debtors' assets will take,
whether the debtors' restructuring plan will be successful, whether or at what
prices the debtors' assets will be sold, whether any offer by any third party
or MID for the debtors' assets will materialize or be successful, and as to
the outcome of litigation or regulatory proceedings, if any, related to the
Chapter 11 proceedings or MID's involvement therein (including as a result of
objections raised at the Bankruptcy Court and with the Ontario Securities
Commission).

    About MID

    MID is a real estate operating company focusing primarily on the
ownership, leasing, management, acquisition and development of a predominantly
industrial rental portfolio for Magna International Inc. and its subsidiaries
in North America and Europe. MID also acquires land that it intends to develop
for mixed-use and residential projects. MID holds a majority interest in MEC,
North America's number one owner and operator of horse racetracks, based on
revenue, and one of the world's leading suppliers, via simulcasting, of live
horse racing content to the growing intertrack, off-track and account wagering
markets. As noted in this press release, MEC has filed a voluntary petition
for reorganization under chapter 11 of the Bankruptcy Code.

    Forward-Looking Statements

    This press release contains "forward-looking statements" within the
meaning of applicable securities legislation. Forward-looking statements may
include, among others, statements relating to the chapter 11 proceedings and
MID's participation therein. 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 or results and will not necessarily be accurate
indications of whether or the times at or by which such future events or
results 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, and are
subject to known and unknown risks, uncertainties and other unpredictable
factors, many of which are beyond the Company'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 and uncertainties inherent in the chapter 11
process, including the auction of MEC's assets, and the risks that are set
forth in the "Risk Factors" section in MID's Annual Information Form for 2008,
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, 2008, 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.





For further information:

For further information: Richard Smith, MID's Executive Vice-President
and Chief Financial Officer, at (905) 726-7507

Organization Profile

MI DEVELOPMENTS INC.

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