Going through the latest filings in the Magna Entertainment Corp. bankruptcy case, a document filed Wednesday caught my eye. It is Magna’s response to separate motions by the state of Maryland and Baltimore that contend the company’s rights to control the auction of Pimlico and Laurel racetracks.
But really, it’s Magna’s response to the law Gov. Martin O’Malley pushed for that allows Baltimore to sieze the tracks by eminent domain.
“While couched in the guise of a mere benign request, the Motions present much more than meets the eye,” the response starts. Referring to the legislation, it continues: “By filing the Motions, the movants seek to obtain comfort for their preconceived indiscretions and the patently apparent violation of…the United States Bankruptcy Code.”
Magna said it reserves the right “and intend[s] to pursue their remedies for the recently enacted legislation and its resultant chilling effect on the Debtors’ property and chapter 11 estates.”
Oh, snap. The gloves have officially come off.
The response then goes on to cite a bunch of legal mumbo jumbo which I won’t bore you with (sorry law dawgs) but suffice it to say the tone was one of extreme annoyance and conveyed the view that the city and state had overreacted to some innocent, extra wording in one of Magna’s first day filings that sought to clarify its rights as a debtor.
Do you think the company has a point? Do you think Maryland’s overreacting?