The New York Racing Association (NYRA) filed a voluntary petition under Chapter 11
of the United States Bankruptcy Code, NYRA officials announced Thursday.
“The goal of the filing is to
maintain the current schedule of racing dates, purse structure, stakes program
and all other racing operations,” NYRA President and CEO Charles Hayward said. “Chapter
11 bankruptcy does not mean going out of business. In fact, it is a constructive
process that allows NYRA the opportunity to achieve financial reorganization
while continuing to conduct world-class Thoroughbred racing without
interruption.”
Late last year, the state legislature worked out a $30 million
loan to allow NYRA to meet its obligations until a new revenue stream could be
put in place, namely the introduction of 4,500 Video Lottery Terminals (VLTs) at
Aqueduct. However, the VLTs have never been approved for Aqueduct, and the state
failed to fund $19 million of the loan that was appropriated for NYRA’s use.
“It is unfortunate, and frankly, inexplicable, why the State Lottery Division
could not work out the details necessary to get the VLT construction underway at
Aqueduct,” said C. Steven Duncker, chairman of the NYRA Board of Trustees. “It
is all the more mystifying given the fact that VLTs have been put in operation
at eight non-NYRA tracks around the state.”