MI Developments not proceeding with previously-announced reorganization proposal

    AURORA, ON, Feb. 18 /CNW/ - MI Developments Inc. (MID) (TSX: MIM.A,
MIM.B; NYSE:   MIM) today announced that it is not proceeding with the
reorganization proposal announced on November 26, 2008. As a result of, among
other things, current global economic conditions, the continued disruptions in
the financial markets and ongoing uncertainty in the automotive industry, MID
has determined that it is unlikely that it will be able to arrange the new
debt financing associated with the proposal. Although the proposal
contemplated the possibility that the new debt could be arranged after
closing, MID does not believe that it would be prudent to raise the new debt
until such time as the ongoing uncertainty in the automotive industry has been
resolved. MID is in discussions with Magna Entertainment Corp. (MEC)
concerning alternatives with respect to its investment in MEC.
    In accordance with the terms of the respective loan agreements, the
maturity date of the first tranche of the new loan that MID made available to
MEC on December 1, 2008 in connection with the reorganization proposal (the
"New Loan"), the maturity date of the bridge loan and the deadline for
repayment of US$100 million under the Gulfstream project financing will each
be accelerated to March 20, 2009. The maturity date of the second tranche of
the New Loan has already been accelerated to May 13, 2009. As of February 18,
2009, there is approximately US$48.5 million outstanding under the first
tranche of the New Loan, approximately US$0.7 million outstanding under the
second tranche of the New Loan, and approximately US$126.2 million outstanding
under the bridge loan. In accordance with its terms, the maturity date of
MEC's credit facility with a Canadian chartered bank will also accelerate to
March 5, 2009.
    MID cautions shareholders and others considering trading in securities of
MID that there can be no assurance that any alternative transaction with
respect to MID's investments in MEC will be completed.

    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: if the parties decide to proceed with a
transaction, the terms of such transaction may differ from those that were
contemplated by the reorganization proposal; if the parties decide to proceed
with a transaction, such transaction may not be successfully completed for any
reason (including the failure to obtain any required approvals); and 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: Richard Smith, Executive Vice-President and
Chief Financial Officer, at (905) 726-7507

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