MI Developments Announces Amendments to Magna Entertainment Bridge Loan and Project Financing Facilities

    AURORA, ON, Sept. 15 /CNW/ - MI Developments Inc. (TSX: MIM.A, MIM.B;
NYSE:   MIM) today announced that it and one of its wholly-owned subsidiaries
(collectively, "MID") have agreed to amend the bridge loan (the "Bridge Loan")
provided in September 2007 (and amended in May and August 2008) to Magna
Entertainment Corp. ("MEC"), as well as the project financing facilities (the
"Project Financings") provided in connection with MEC's racing and alternative
gaming facilities at Gulfstream Park in Florida and Remington Park in
    The maturity date of the Bridge Loan will be extended from September 30,
2008 to October 31, 2008. In addition, MID will extend the deadline for
repayment of at least US$100 million under the Gulfstream Park facility from
September 30, 2008 to October 31, 2008 (during which time any repayments made
under either of the Project Financings will not be subject to a make-whole
payment). MID has also agreed to allow MEC to use up to US$2 million under the
Bridge Loan to fund costs associated with the upcoming Maryland slots
referendum. In connection with the extension of the Bridge Loan, MID will
receive an extension fee of US$527,500. The amendments are conditional on MEC
extending the maturity date of its US$40 million senior secured revolving
credit facility with a Canadian chartered bank from September 15, 2008 to
October 15, 2008. Draws under the Bridge Loan will not be permitted after
October 15, 2008 unless the MEC bank facility has been further extended or
    The MID Board approved the amendments to the Bridge Loan and the Project
Financings after considering, among other things, a recommendation from a
Special Committee of independent directors. The amendments are intended to
provide MID with time to continue to explore a range of alternatives,
including, without limitation, examining potential amendments to the
reorganization proposal received by the MID Board of Directors on March 31,
2008 and evaluating whether or to what extent MID might participate in a
recapitalization or restructuring of MEC.
    Dennis Mills, MID's Vice-Chairman and Interim Chief Executive Officer,
stated, "This short-term extension of the bridge loan allows us to remain
focused on attempting to develop a compromise solution that is in the best
interests of MID and can be implemented with the necessary stakeholder
    Neither the MID Special Committee of independent directors nor the MID
Board of Directors has made any decisions or recommendations with respect to
any reorganization proposal or any other transaction relating to MID or MEC.
There can be no assurance that any reorganization transaction, or any other
transaction relating to MID or MEC, will be completed.
    MID will file a material change report immediately upon filing of this
press release. The material change report will be filed less than 21 days
before the date of the closing of the amendments, which, in MID's view, is
both reasonable and necessary in the circumstances as the terms of the
amendments were settled, and approved by MID's Board of Directors, on
September 15, 2008, and MEC requires immediate funding to address its
short-term liquidity concerns. For more details on the amendments, please
refer to the material change report. In addition, the amendments to the Bridge
Loan and the Project Financings will be filed by MID on SEDAR at www.sedar.com
and on the SEC's website at www.sec.gov.

    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 controlling 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.

    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 reorganization proposal and
the terms and conditions of such proposal. 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 that the parties may not proceed with the
reorganization proposal delivered to the Company on March 31, 2008, and if the
parties decide to proceed with a transaction, the terms of such transaction
may differ from those that are currently contemplated by the proposed
reorganization. Other important factors are set forth in the "Risk Factors"
section in MID's Annual Information Form for 2007, 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, 2007, 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 Dennis
Mills, MID's Vice-Chairman and Interim Chief Executive Officer, at (905)

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