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Magna Plans No Debt By End Of 2008
Magna Entertainment "has concluded its strategic review of assets & operations & has adopted a plan to eliminate the company's net debt by 31 December 2008," reported thoroughbredtimes.com. Magna "will need to generate proceeds of US$600-700-million over the next 15.5 months to accomplish this plan" & "outlined 3 methods of obtaining this goal": sale of real estate, racetracks & other assets sale of or entering into "strategic transactions" involving Magna's other racing, gaming & technology operations; & possible future equity issuance (likely in 2008). Former Magna chief executive Tom Hodgson (retained by the company's board of directors as a consultant) summed up: "Magna is at a crossroads. The elimination of Magna's net debt by 31 December 2008 is a fairly tall order, but I believe Magna's strong asset base makes this feasible & it is a target that all members of the company's senior management & board, including chairman Frank Stronach, are firmly committed to." Magna has already announced plans to sell its interests in Great Lakes Downs in Michigan, Portland Meadows in Oregon & Thistledown in Ohio.