Bankruptcy

One day after the latest hearing in a federal Bankruptcy Court in Chicago over Hawthorne's insolvency dealings, a slight equipment delay puts a question mark over the start of training in preparation for a Spring Thoroughbred meet, but there appears to be movement over important simulcast signals going back online. According to Illinois Thoroughbred Horsemen's Association (ITHA) President Chris Block, the trucks to haul the dirt surface to the track have been rented, but the loaders needed to move the dirt into the trucks have yet to arrive. "The conversion...

Former jockey Frankie Dettori has had his bankruptcy extended until March 16, 2027, after a judge at a specialist insolvency court ruled his bankruptcy should not be automatically discharged. The Italian formally retired from the saddle last month. At a hearing in London on Thursday, lawyers for the two trustees of Dettori's bankruptcy asked for the order to remain in place for a further year. Stefan Ramel, representing the trustees, told the court that the former jockey "has not complied and is still not complying" with requests for information about...

After two days of proceedings in a federal bankruptcy court in Chicago Tuesday and Wednesday, judge Timothy Barnes has authorized the release of funds to pay outstanding wages owed to Hawthorne employees and to pay for the necessary equipment to resurface the track in preparation for a Thoroughbred meet, according to Illinois Thoroughbred Horsemen's Association (ITHA) president Chris Block, who attended the hearings. Hawthorne, and its related companies, filed for a Chapter 11 business reorganization Friday. The filing is built around a "debtor in possession" financing mechanism, which is when...

Hawthorne Race Course, and its related companies, has filed for a Chapter 11 reorganization in Federal Bankruptcy Court in Chicago Friday. According to a press release issued by the track, the "reorganization plan will prioritize paying accrued purses to the Illinois Horsemen as well as payroll for the track employees while restructuring the company's debt. "The goal of the reorganization is to attract a buyer or investor willing to recapitalize Hawthorne and restart operations of the racecourse while maximizing recovery to the company's creditors. Hawthorne will be working with financial...

Jockey Frankie Dettori has been unable to pay his £765,000 tax debt after his various companies were liquidated, according to a report on msn.com. The legendary jockey declared bankruptcy last March. Companies House published an update to the liquidation of Frankie Dettori Limited and Newmarket Activities Limited, which showed there were no funds to repay the debt. Dettori owes £765,000 to HMRC as of last October and an additional £6,391 to a car leasing company. Once the costs to liquidate his businesses are added in, the debt total is £888,799....

Frankie Dettori has been forced to file for bankruptcy after failing to reach an agreement with His Majesty's Revenue and Customs (HMRC) over a long-running tax avoidance case. The Italian released a statement to confirm this latest development on Thursday. "For the last six-months, my advisors have been working with HMRC in an attempt to find a solution to my financial situation," the statement read. "Regretfully, I will be filing for bankruptcy. "I am saddened and embarrassed by this outcome and would advise others to take a stronger rein over...

Chester regular Marwan Koukash has been removed as a registered owner by the British Horseracing Authority (BHA) due to being declared bankrupt, according to published reports. The 69-year-old Palestinian won the Chester Cup four times with his runners between 2008 and 2018. His record at the track stands at 97 winners. Holding a PhD in electrical engineering, the businessman owned the Salford City Reds rugby team at one time, as well as a string of hotels among his various interests. The bankruptcy petition was filed in June of 2022 and...

The trustee overseeing owner, breeder Ahmed Zayat's personal bankruptcy proceedings made several court filings Tuesday to recover roughly $90,000 in allegedly fraudulent payments to various law firms. According to the court filings, Zayat was insolvent at the time the transfers were made, and therefore, the law firms who are the defendants in the suits received more than they would have done through the Chapter 7 bankruptcy proceedings "had the Transfer[s] not been made." Trustee Donald Biase alleges in his court filings that the largest transfer of money Zayat fraudulently made...

The trustee in Ahmed Zayat's personal bankruptcy case has negotiated a $1.5-million settlement to be paid by the debtor's brother, Sherif Zayat, that a court document stated will "resolve all claims and causes of action" related to the multiple mortgages on Zayat's home. The motion for approval of that settlement, if so ordered by a judge in a New Jersey federal bankruptcy court July 6, doesn't mean the end to the complicated, now 21-month-long Chapter 7 petition by the allegedly insolvent former Thoroughbred owner and breeder. But it does mean...

In a bankruptcy case already brimming with fraud allegations that has languished in federal court for over a year, the trustee pouring over the finances of Ahmed Zayat filed a new complaint alleging wrongdoing Friday. This latest court action in the twisted saga of the owner and breeder of Triple Crown champ American Pharoah alleges that Zayat and his wife, Joanne, secured a $400,000 mortgage on two back lots adjacent to their New Jersey home in 2018, then had the money wired to the bank account of Zayat's fiscally troubled...

In an effort to claw back at least $200,000 in transfers by Ahmed Zayat that allegedly constitute "fraudulent conveyance" because they occurred just prior Zayat's filing for Chapter 7 bankruptcy protection, the trustee in charge of vetting Zayat's case filed two complaints in federal court Wednesday that aim to recover that money so it might instead go toward paying creditors. Zayat claims to be $19 million in debt, and a massive chunk of that money is owed to Thoroughbred-related individuals and entities. According to documentation filed Apr. 21 in United...

Claiming access to only $300 in cash and $14.22 in two checking accounts, Ahmed Zayat, the financially embattled Triple Crown-winning breeder and owner, filed for Chapter 7 protection Sep. 8 in United States Bankruptcy Court in his home state of New Jersey. In court documents, Zayat is claiming $19,371,466 in total liabilities versus total estimated assets of $1,892,815. Thoroughbred trainers, horse farms, bloodstock businesses, veterinarians, and equine transportation companies are among the 132 entities listed as creditors who are due $14,755,1717 in "non-priority unsecured claims." In his legal filing, Zayat...