Adjournment of Magna Entertainment chapter 11 bankruptcy hearing

    AURORA, ON, April 3 /CNW/ - MI Developments Inc. (MID) (TSX: MIM.A,
MIM.B; NYSE:   MIM) today announced that Magna Entertainment Corp. and certain
of its subsidiaries that have filed voluntary petitions for relief under
chapter 11 of the United States Bankruptcy Code (collectively, "MEC" or the
"Debtors") requested an adjournment until April 20, 2009 for the United States
Bankruptcy Court for the District of Delaware (the "Court") to consider
various motions filed with the Court. The hearing on such motions is now
scheduled for April 20, 2009, and at that time the Court will consider (i) the
entry of a final order with respect to the secured debtor-in-possession
financing facility (the "DIP Loan") that a wholly-owned subsidiary of MID (the
"MID Lender") has agreed to provide to the Debtors and (ii) the entry of an
order in connection with bid and auction procedures (the "Bid Procedures
Orders") for assets that the Debtors seek to market and sell, including those
assets that are the subject of the stalking horse bid from MID announced on
March 5, 2009.
    The DIP Loan initial tranche of up to US$13.4 million was made available
to the Debtors on March 6, 2009 pursuant to approval of the Court. An interim
order approving the initial tranche was subsequently entered by the Court on
March 13, 2009. On April 3, 2009, the Court approved an additional US$2.5
million being made available to the Debtors under the DIP Loan pending the
April 20, 2009 hearing, when the Court will consider the entry of a final
order on the DIP Loan and, if approved, a second tranche of up to US$46.6
million will be made available to the Debtors.
    Through the Bid Procedures Orders, the Debtors, with assistance from
their outside financial advisor and investment banker, Miller Buckfire & Co.,
LLC, seek to conduct a Court-supervised marketing and sale process for all or
substantially all of MEC's assets. On March 5, 2009, MID entered into an
agreement with MEC to purchase MEC's relevant interests associated with the
following assets (the "Stalking Horse Bid"): Golden Gate Fields; Gulfstream
Park, including MEC's interest in The Village at Gulfstream Park(TM) (a joint
venture with Forest City Enterprises, Inc.); Palm Meadows Training Center and
related excess lands; Lone Star Park; AmTote; XpressBet(R); and a holdback
note associated with MEC's sale of The Meadows in 2006. MID's aggregate offer
price for these assets is approximately US$195.0 million, with US$136.0
million to be satisfied through a credit bid of the MID Lender's existing
loans to MEC, US$44.0 million in cash and US$15.0 million through the
assumption of a capital lease. MID's Stalking Horse Bid may be topped by third
parties during this auction and any sale of assets to MID or any third party
will be subject to approval by the Court. MID has not made an offer to
purchase any other assets of MEC at this time, although MID will continue to
evaluate whether to do so during the course of the chapter 11 process.
    Concurrent with the adjournment, MID, the MID Lender and MEC agreed to
certain modifications and waivers to (i) the DIP Loan to allow for the
adjournment and (ii) the purchase agreement for the Stalking Horse Bid to
provide for the ability of MID or MEC to terminate the Stalking Horse Bid
should the Ontario Securities Commission determine that the approval of MID's
minority shareholders is required in respect of the Stalking Horse Bid or any
of the transactions provided for therein, provided that this termination right
cannot be used if MID elects to call a meeting of shareholder to seek such
minority approval (unless the approval is not obtained at such meeting).
    MID holds a majority equity interest in MEC and the MID Lender is the
largest secured creditor of the Debtors. The current balance of the MID
Lender's existing loans to the Debtors, including accrued interest, is
approximately US$372 million, comprised of US$171 million under the Gulfstream
Park project financing, US$23 million under the Remington Park project
financing, US$125 million under the bridge loan provided in September 2007,
and US$53 million under the loan provided in December 2008. All of these loans
are secured.
    The ultimate recovery to MID as a stockholder of MEC, if any, in the
Debtors' chapter 11 proceedings will likely not be determined until
confirmation of a plan of reorganization for MEC. In this regard, however,
such a plan is likely to result in MID not receiving any value for its
existing MEC stock and in the cancellation of such stock. Furthermore, no
assurance can be given as to the treatment the MID Lender's claims will
receive in the Debtors' chapter 11 proceedings, although, as a general matter,
secured creditors are entitled to priority over unsecured creditors to the
extent of the value of the collateral securing such claims.
    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 the Stalking Horse Bid or any
other offer by MID or any third party 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 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 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: about this press release, please contact
Richard Smith, MID's Executive Vice-President and Chief Financial Officer, at
(905) 726-7507

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