NYRA strikes back; Will float OTB takeover..

[Kasept]

On the heels of a vile anti-NYRA editorial planted in the NY Daily News by OTB head Sandy Frucher, the Association has rightfully come back swinging regarding the fallacies and inappropriateness of the NYC OTB bankruptcy. See the Matt Hegarty (DRF) and Tom Precious (Bloodhorse) pieces below...

The inequities and questionable legality of OTB's filing were pointed out weeks ago on ATR by Hegarty. As to the smear in the Daily News, I told ATR listeners what Ben Leibman (Executive Director of the Government Law Center of Albany Law School) correctly predicted as tactics that Frucher, a longtime Albany policy wonk and puppetmaster, would use on the editorial pages.




NYRA objects to OTB bankruptcy petition
By Matt Hegarty

http://www.drf.com/news/article/109927.html

The New York Racing Association and the New York Thoroughbred Horsemen's Associations are seeking to dismiss a bankruptcy petition by New York City Off-Track Betting Corp., according to objections the two groups have filed with the bankruptcy court.

The objections signal that NYRA and its horsemen are preparing for a drawn-out battle with New York City OTB as the company seeks to reorganize under a little-used section of the bankruptcy code, Chapter 9, which is reserved for municipalities. New York City OTB, which is owned by the state, filed for Chapter 9 bankruptcy on Dec. 3, listing NYRA as it second-largest creditor with a debt of $14.7 million.

In its objection, NYRA states that the court should dismiss the bankruptcy filing for several reasons, including its contention that the offtrack betting corporation did not obtain approval from the state legislature to file for Chapter 9 bankruptcy.

In addition, NYRA contends in the objection that OTB "failed to demonstrate in good faith over a plan of adjustment with its creditors" and that OTB is using the bankruptcy filing to put pressure on the state legislature to reduce its statutory obligations to the racing industry and other parties that have a share in the company's revenues.



NYRA: Toss Out NYCOTB Bankruptcy Petition
By Tom Precious

http://www.bloodhorse.com/horse-raci...uptcy-petition

The recent bankruptcy petition by the New York City Off-Track Betting Corp. should be tossed out of federal court, the New York Racing Association argues in a lengthy legal brief filed Jan. 4 in Manhattan.

NYRA, which is the second largest creditor of the NYCOTB, said the OTB failed to negotiate with any of its creditors before filing its Chapter 9 reorganization plan and is using the bankruptcy filing as a maneuver to try to get its way on its long-stalled legislative agenda at the state Capitol.

In a 23-page filing with the U.S. Bankruptcy Court in the Southern District of New York, NYRA’s lawyers argue that the OTB failed to meet the legal “good faith’’ provisions to seek bankruptcy protection.

The legal brief, continuing a long-running battle between NYRA and NYCOTB, states that the OTB over-stepped its legal authority to file the petition in the first place. It said an executive order from New York Gov. David Paterson permitting the Chapter 9 move was not enough, and that the filing needed authorization from the state legislature. NYRA also maintains that the OTB “strangely’’ left out of its filing some $200 million owed to other creditors.