MAGNA: Desperate hours fast approaching..

[Kasept]

MEC Reorganization Plan Scrapped
By Ryan Conley

Magna Entertainment Corp. said Feb. 18 it might not be able to meet pressing financial obligations unless alternative measures are found, a revelation disclosed following the sudden halt of a controversial reorganization proposal for the company and its controlling shareholder, MI Developments.

http://www.bloodhorse.com/horse-raci...-plan-scrapped

In a separate release, MEC said substantially all of its other current and long-term debt will also become due on demand as a result of cross-default provisions within loan agreements, unless MEC is able to obtain waivers, modifications or extensions.

"In the event MEC is unsuccessful in its efforts to raise additional funds, through an alternative transaction with MID, assets sales, by taking on additional debt or by some other means, MEC will not be able to meet such obligations," the MEC release said.