Magna - one step away from bankruptcy ??

[SentToStud]

Originally Posted by Secretariat

i imagine the real estate is equal to the mortgage, he just took out a mortgage to build the place, and he has been borrowing 9 million a month since it was built.
i haven';t seen the balance sheet, but i doubt the underlying equity in the real estate is anything to drastic.
at most, a shot in the dark, hge could get $100,000,000 more than he what he spent on it. that would fund the track for 1 more year. than what ???

he should look into leasing the track, or maybe selling the rights for twenty years to AP for 5 grade1 races.
hmmm, thats an idea, sell the rights to the graded stakes..

Magna's borrowed about $110 million from its parent company (Stronach's auto parts & supplies concern) over the past 18 months. The real estate is appreciating (of course), but there is no top line growth. Good to have a guy like him pouring money into the sport, but I'd rather own something other than Magna Entertainment. It is never a good thing when the CFO jumps. Never.