Fifth Third Bank suing Zayat

[Sightseek]

Bank sues prominent owner Zayat
By Glenye Cain Oakford

LEXINGTON, Ky. - Fifth Third Bank has filed a lawsuit against prominent racehorse and stallion owner Ahmed Zayat, alleging that he owes the bank more than $34 million on loans for his equine operations.

http://www.drf.com/news/article/109567.html

[randallscott35]

Couldn't happen to a nicer guy.

[Scav]

Originally Posted by randallscott35

Couldn't happen to a nicer guy.

Maybe I am wrong, but I heard Zayat was a nice guy

[randallscott35]

Originally Posted by Scav

Maybe I am wrong, but I heard Zayat was a nice guy

Seems like a blowhard owner to me.

[randallscott35]

34 million is a nice chunk of change. Smells like fraud.

[VOL JACK]

I don't know which of the two I'm more surprised.

Zayat has to take out loans to buy horses??

Or there is a bank out there dumb enough to loan someone $34,000,000 to purchase race horses.

[NTamm1215]

Damn, I had after February 2010 in the when is Zayat gonna go tits up pool.

NT

[Danzig]

Originally Posted by VOL JACK

I don't know which of the two I'm more surprised.

Zayat has to take out loans to buy horses??

Or there is a bank out there dumb enough to loan someone $34,000,000 to purchase race horses.

i'd imagine 'equine operations' involves more than purchasing. and not the first time fifth third has been in the news regarding racing deals.

[Scav]

Originally Posted by VOL JACK

I don't know which of the two I'm more surprised.

Zayat has to take out loans to buy horses??

Or there is a bank out there dumb enough to loan someone $34,000,000 to purchase race horses.

The racehorse loan industry was probably one of the hardest hit industries from the recession. Pure speculation but Zayat probably used assets as collateral instead of tying up a bunch of cash. It is pretty common.

[parsixfarms]

Probably explains why all those wonderful horses of his were sold for stud duty, even the ones like Alaazo who shouldn't be standing anywhere.

[philcski]

Originally Posted by parsixfarms

Probably explains why all those wonderful horses of his were sold for stud duty, even the ones like Alaazo who shouldn't be standing anywhere.

Bingo!

Fifth Third USED to do a lot of equine-related lending.

[VOL JACK]

Originally Posted by Scav

The racehorse loan industry was probably one of the hardest hit industries from the recession. Pure speculation but Zayat probably used assets as collateral instead of tying up a bunch of cash. It is pretty common.

If you have to borrow money to play this game (betting or Owning) you are in the wrong sport.

[Danzig]

Originally Posted by VOL JACK

If you have to borrow money to play this game (betting or Owning) you are in the wrong sport.

most businesses and individuals have lines of credit. what, you think all those bidding at auctions have cash in their pockets?

[Cannon Shell]

Originally Posted by VOL JACK

I don't know which of the two I'm more surprised.

Zayat has to take out loans to buy horses??

Or there is a bank out there dumb enough to loan someone $34,000,000 to purchase race horses.

All real businesses play with other peoples money. The IRS likes when you pay interest. When you are spending money like he is you dont want to be deemed a hobby. It is surprising that the bank would continue to loan at those levels based soley on the value of the bloodstock.

[freddymo]

Originally Posted by Cannon Shell

All real businesses play with other peoples money. The IRS likes when you pay interest. When you are spending money like he is you dont want to be deemed a hobby. It is surprising that the bank would continue to loan at those levels based soley on the value of the bloodstock.

He had to have PG'd the loans

[Cannon Shell]

Originally Posted by freddymo

He had to have PG'd the loans

Maybe he put up Sohby as collateral?