AURORA, ON, July 13 /CNW/ - Magna Entertainment Corp. ("MEC" or the "Company") filed this news release as its twenty-eighth bi-weekly default status report under National Policy 12-203 of the Canadian Securities Administrators, pursuant to which MEC announced that it would not be filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2008, nor would it be filing quarterly reports on Form 10-Q, with the U.S. Securities and Exchange Commission or the Canadian securities regulators during the period it continued to operate its business as a debtor-in-possession under the United States Bankruptcy Code. MEC has not and will not be filing an Annual Report on Form 10-K for the fiscal year ended December 31, 2009, nor will it be filing quarterly reports on Form 10-Q in respect of quarterly periods thereafter. On April 30, 2010, the plan of reorganization jointly proposed by MEC and certain of its subsidiaries, MI Developments Inc., and the Official Committee of Unsecured Creditors of MEC was confirmed by the Bankruptcy Court and became effective as of 5:01 p.m. (Eastern Daylight Time) on April 30, 2010. Accordingly, following the closing of the sale of Lone Star Park, which is expected to occur in September 2010, MEC intends to apply to the Canadian securities regulators to cease to be a reporting issuer under applicable Canadian securities laws. MEC also intends to take steps to deregister its common stock and suspend its reporting obligations under applicable U.S. securities laws.
Details concerning MEC's plan of reorganization are available at www.magnaent.com and www.kccllc.net/magna.
Except as otherwise set out in this press release, since announcing the original notice of default on March 26, 2009, and filing its bi-weekly default status reports up to and including June 21, 2010, there have not been any material changes to the information contained therein, nor any failure by MEC to fulfill its intentions stated therein, and there are no additional defaults or anticipated defaults subsequent thereto.
This press release contains "forward-looking statements" within the meaning of applicable securities legislation, including Section 27A of the United States Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the United States Securities Exchange Act of 1934, as amended (the "Exchange Act") and forward-looking information as defined in the Securities Act (Ontario) (collectively referred to as "forward-looking statements"). These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Securities Act (Ontario). Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or the times at or by which such performance 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 made in light of the Company's perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances 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 actual results to differ materially from the Company's forward-looking statements include, but may not be limited to, the timing of filing of default status reports,; material adverse changes in: general economic conditions; the popularity of racing and other gaming activities as recreational activities; the regulatory environment affecting the horse racing and gaming industries; the Company's ability to obtain or maintain government and other regulatory approvals necessary or desirable to proceed with proposed real estate developments; increased regulation affecting certain of the Company's non-racetrack operations, such as broadcasting ventures; and the Company's ability to develop, execute or finance the Company's strategies and plans within expected timelines or budgets. Forward-looking statements speak only as of the date the statements were made. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking statements. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect thereto or with respect to other forward-looking statements.
SOURCE: Magna Entertainment Corp.
For further information: For further information: William G. Ford, Executive Vice-President and General Counsel, Magna Entertainment Corp., 337 Magna Drive, Aurora, ON, L4G 7K1, Tel: 905-726-7191, www.magnaent.com