Zayat Stables

MGG Wants Zayat Debt Ruled 'Non-Dischargeable' Because of Alleged Fraud

MGG Investment Group, LP, is already nearly a year into a civil lawsuit initiated to try and recoup $24 million in loan defaults by Ahmed Zayat and his family-owned bloodstock and racing operation. Now the New York-based lender is going after the insolvent Triple Crown-winning owner and breeder in a different court by trying to get a federal bankruptcy judge to rule that some of Zayat's debts shouldn't be legally forgiven under the Chapter 7 bankruptcy protection he is seeking because those loans were the product of years of systematic...

[ Read More ]
Bob and Jackie Tops Keeneland Monday

A pair of racehorse prospects offered by St. George Sales late in the day were the lone lots to bring six figures during Monday's session of the Keeneland November sale, with graded-stakes placed Bob and Jackie (Twirling Candy) (hip 3017F) bringing top price of $190,000 when selling to bloodstock agents Grey Price and Mike Recio on behalf of California owner Calvin Nguyen. Bred and raced by Zayat Stables, the 4-year-old is a three-time stakes winner and recently finished third in the Oct. 3 GII City of Hope Mile S. Bob...

[ Read More ]
Former Session Topper Given Away as Zayat Liquidation Continues

After nine months under court-appointed receivership to liquidate and manage its remaining equine assets, the insolvent Zayat Stables, LLC, is down to 12 remaining horses at eight locations, according to an October status report filed Nov. 11 in Kentucky's Fayette Circuit Court. One formerly valuable colt had to be given away during the most recent month of transactions: Lexington-based receiver Elizabeth Woodward wrote that she released the ownership of a 3-year-old Empire Maker--Duke's Dream colt "to offset boarding, training and veterinary charges which exceeded the estimated fair market value of...

[ Read More ]
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,...

[ Read More ]
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...

[ Read More ]
MGG Claim to Solomini, Others, Thrown Out

Judge Kimberly Bunnell has dismissed the New York-based lending firm MGG's attempt to place a lien on the stud fees and progeny of Solomini, to claim nine breeding rights to American Pharoah and the broodmare American Cleopatra, according to Gregory Parsons of States & Harbison, who represented the owners of Solomini in MGG's suit. The ruling was issued June 10 in Fayette, Kentucky Circuit Court. Solomini stands at McMahon of Saratoga Thoroughbreds, where he has bred 127 mares in his initial season at stud. In January, MGG filed a $23...

[ Read More ]
Zayat Receiver's Report Cites `Unorthodox, Possibly Fraudulent' Billing Practices

The court-appointed receiver for Zayat Stables has "identified unorthodox, possibly fraudulent billing practices and billing errors in which trainers and other care providers effectively over-billed costs as a means of increasing the Receiver's statutory lien obligations," according to a report filed in Fayette, Kentucky, Circuit Court May 5. No trainers or other care providers were identified, and no further detail was provided, only that the identification of these practices is now "resulting in a significant savings to the Receivership." The report was the third such monthly report submitted by Elizabeth...

[ Read More ]
Hill 'N' Dale Files Motion to be Dismissed From Zayat Lawsuit

A March 20 court hearing in Kentucky will determine if Hill 'n' Dale Farms can have a claim dismissed that involves a New York lending firm wanting to take possession of equine assets that were allegedly sold in 2017 at under-market value by financially troubled Zayat Stables, LLC, which is the chief defendant in the same $23 million lawsuit alleging loan default and fraud. The equine asset in question in this case is the broodmare American Cleopatra, a full sister to 2015 Triple Crown winner American Pharoah. The Blood-Horse first...

[ Read More ]
Zayat Receiver Argues Powers Not Broad Enough

A Friday hearing could bring much-needed clarity to the $23 million lawsuit against Ahmed Zayat and his financially troubled Zayat Stables, LLC, regarding whether or not the court-appointed receiver in the Kentucky case should be allowed to have broadly expanded legal powers over racing and breeding stock. But instead of categorically fighting the receiver's Feb. 18 motion for more control over his horse business, lawyers for Zayat on Feb. 20 filed a response that asked a Fayette Circuit Court judge to grant that motion in part and to deny it...

[ Read More ]
MGG Drops Complaint Against Thomas Clark Bloodstock

After filing a civil complaint against numerous individuals and entities that had purchased horses or other assets from Ahmed Zayat, MGG Investments has given up the portion of its complaint that aims to collect money from Thomas Clark Bloodstock. Clark's attorney Tom Miller received a notice Tuesday from lawyers representing MGG notifying him that the complaint against Clark had been voluntarily dismissed. Last week, MGG amended its civil complaint against Zayat to include several breeding farms and individuals, including Coolmore Stud, Hill 'n' Dale and LNJ Foxwoods. MGG has sued...

[ Read More ]
For Buyers of Zayat Horses, What is the Law?

When the MGG Investment Group filed a complaint in Fayette Circuit Court on Tuesday seeking the return of horses previously owned by Zayat Stables which had been sold privately and at public auction, it raised the question: is it the responsibility of a buyer at auction or a sales company to run a search prior to the transaction to determine if the horse is being sold free of liens and encumbrances? And are private buyers of horses required to do so? In short: might the buyers of those horses at...

[ Read More ]
Zayat Camp Releases Statement

The New York lending firm that last month initiated a $23-million lawsuit against Ahmed Zayat and his financially troubled Zayat Stables, LLC, broadly amended its civil complaint in a Kentucky court earlier this week (click here). Zayat Stables issued the following statement Thursday regarding the amended complaint: "We are disappointed but not surprised at MGG and Kevin Griffin's aggressive attack on the horse industry. Zayat Stables said from the beginning that it wanted to liquidate certain assets to generate enough proceeds to pay off all of its creditors. Motivated purely...

[ Read More ]