By T. D. Thornton
A bankruptcy court hearing scheduled Wednesday is expected to provide clarity on the move-out status of the remaining horses and backstretch residents who must vacate Hawthorne Race Course before a $90-million bankruptcy sale of the property can happen in two weeks.
A new wrinkle emerged after weeks of telling backstretch residents they must be out by Aug. 31: Hawthorne now wants the court to set Aug. 28 as the date when the “order of possession” takes effect.
“In order to ensure that the closing of the sale of the real estate [will proceed] as scheduled on Sept. 1, the Debtors seek entry of an order for possession of the Premises effective immediately with enforcement stayed until Aug. 28,” stated an Aug. 14 motion filed by Hawthorne, which is seeking to restructure between $100 and $500 million in debt.
That filing came on the heels of a status report submitted the same day by the Illinois Thoroughbred Horsemen's Association (ITHA) filed with United States Bankruptcy Court, Northern District of Illinois (Eastern Division) to update the progress of rehoming efforts.
The ITHA's report indicated that most human and equine residents have either moved or are on their way to being relocated.
“As of Aug. 11, there were 128 horses remaining. This is a reduction of 338 over the three weeks of the wind-down and move-out of the backstretch. Additionally, the ITHA has been informed that another material shipping of most (if not all) of the horses at the backstretch has been scheduled for Aug. 20,” the ITHA's report stated.
“As of Aug. 14, there were 177 adults remaining. This is a reduction of 357 adults over the three weeks of the wind-down and move-out of the backstretch…. There are 78 children remaining at the backstretch as well. The reduction in children will coincide with the reduction of adults,” the ITHA's report stated.
Hawthorne's Aug. 14 motion asked for a “writ of assistance” to make sure everyone is off the property, and stated that a U.S. marshal might be needed to execute on the order of possession.
“The Debtors file this Motion to establish a protocol to ensure that the Premises will be vacated and the closing will proceed,” Hawthorne's Aug. 14 filing stated.
Shortly before 5 p.m. CT on Tuesday, Aug. 18, the ITHA filed a notice of limited objection to Hawthorne's newly requested Aug. 28 move-out date.
“ITHA objects to the Motion's request for an order for possession that is stayed only until 12:01 a.m. on Aug. 28, improperly amends the Sale Order, and prejudices the rights of the Backstretch Community,” the ITHA's objection stated. “The Court should grant the Motion with an order for possession stayed until 9:00 a.m. on Aug. 31.”
The ITHA's objection continued: “This request cuts short the court-ordered and agreed residency of the Backstretch Community by three full days. The Court and parties are fully aware of how this transaction has upended the lives and livelihoods of the Backstretch Community,” the ITHA's objection stated.
“All remaining parties at the backstretch have been informed of the Eviction Deadline and requirement to vacate [Hawthorne] no later than Aug. 31. The request to further shorten that period by three days is unnecessary and punitive to the Backstretch Community,” the objections stated.
The ITHA has scheduled a resource fair for Aug. 21, “focused solely on finding housing for any remaining backstretch workers,” according to its Aug. 14 filing.
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