More on Santa Anita's woes

The California Horse Racing Board has called a special meeting for Friday at 10:30 a.m. at Santa Anita to cover the following subjects regarding Magna Entertainment Corporation's impending bankruptcy:

1) Discussion and action by the Board regarding the race meet licenses and the Advance Deposit Wagering license granted to Los Angeles Turf Club, Inc., operating at Santa Anita Park and Pacific Racing Association, operating at Golden Gate Fields and XpressBet Inc. respectively, in light of the imminent filing for bankruptcy protection by licensees' parent company, Magna Entertainment Corporation.

2) Discussion and action by the Board regarding assurances from licensees Los Angeles Turf Club, Inc., Pacific Racing Association and XpressBet Inc. that the wagering public and horse racing industry participants are financially protected in the event the licensees parent company, Magna Entertainment Corporation, files for protection under federal bankruptcy laws.

3) Discussion and action by the Board regarding contingency plans in the event Magna Entertainment Corporation is unable to secure "Debtor in Possession Financing", including substitute race meet operators should licensees Los Angeles Turf Club, Inc., and Pacific Racing Association cease operations and Advance Deposit Wagering operations of XpressBet Inc. be suspended.

I have gotten e-mails from several readers worried about their XpressBet money if and when Magna files for bankruptcy. I am told it is safe, but I was also told to buy a stock two months ago that has gone down 55 percent since. In other words, who really knows?

Also, the California Thoroughbred Trainers sent out the following memo to their members Wednesday:

DATE: March 4, 2009
TO: All Trainers
FROM: CTT

SUBJECT: Paymaster Fund Withdrawals

If you would like to withdraw Santa Anita Paymaster funds immediately, the Paymaster's office will be open until 1:00 p.m. today. If you do not withdraw your funds today, you will be unable to withdraw your funds over the next three days while accounts are being transferred to a horsemen's account to be managed by the TOC.

The three day delay is so that new checks can be printed and paperwork can be completed. Beginning next week, things will return to normal and you will be able to withdraw funds at your request.

The funds will still be handled through the Paymaster's office, but the account will be managed by the TOC instead of Magna.

Should you have any questions, please contact the CTT office at (626) 447-2145 or the TOC at (626) 574-6620.

Our newspaper sent out a reporter and photographer to the racing office Wednesday morning at 9 and they couldn't find anyone there who was trying to withdraw money. Maybe fears have been alleviated? It looks like perhaps negotiations between the Thoroughbred Owners of California and local Magna officials have resulted in a settlement and the paymaster account money will now be transferred to a separate TOC account. Whatever, there are still a lot of nervous people at Santa Anita.