Zayat bankruptcy

November Auction Anticipated for Zayat Horses Under Receivership

Attorneys representing MGG Investment Group, LP, which is the plaintiff in a $24.5 million Kentucky civil lawsuit alleging fraud and loan defaults against Ahmed Zayat and his family's Zayat Stables, LLC, disclosed in a legal document filed Sept. 18 that the court-appointed receiver in that case intends to hold a November auction to sell off horses that are being held as collateral against the unpaid debts. News about this anticipated November auction was made public in the form of a letter dated Friday and filed in United States Bankruptcy Court,...

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Former Zayat Financial Advisor Among Creditors Trying to `Force’ Stable’s Bankruptcy

Ahmed Zayat's former financial advisor is among the entities now initiating an "involuntary bankruptcy" petition against Zayat's family-owned racing stable. This Sept. 14 court action comes six days after the allegedly insolvent Triple Crown-winning breeder and owner voluntarily filed for his own personal Chapter 7 bankruptcy protection. Although once prevalent, involuntary bankruptcy proceedings are now relatively uncommon in United States courts. They are designed to protect creditors, not debtors, and are often filed against companies (as opposed to individuals) as an attempt to get paid when it is believed that...

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