Source: Company Press Release
 
MI Developments Inc. ("MID") today announced that the Plan of Reorganization (“Plan”) in respect of Magna Entertainment Corp. ("MEC") and certain of its subsidiaries, jointly proposed by MEC, MID and the Official Committee of Unsecured Creditors of MEC (the “Creditors Committee”) has become effective as of 5:01 p.m. Eastern Daylight Time on April 30, 2010. The original litigation settlement, to be implemented by the Plan, was announced by MID on January 11, 2010.
 
"With the closing of the bankruptcy process, MID has substantially enhanced its real estate portfolio,” stated Dennis Mills, MID's Vice-Chairman and Chief Executive Officer. “Going forward, MID is determined to work with the racing industry and local regulators to develop business models that will result in sustainable returns for each of our racing, gaming and real estate assets.”
 
Under the terms of the Plan, in exchange for the dismissal with prejudice of the action commenced by the Creditors Committee in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) and releases of MID, its affiliates, and all current and former officers and directors of MID and MEC and their respective affiliates, the unsecured creditors of MEC will receive US$89 million in cash plus US$1.5 million as a reimbursement for certain expenses in connection with the action.
 
In addition, under the terms of the Plan and in full satisfaction and release of all MID’s claims against MEC and its debtor subsidiaries, certain assets of MEC have been transferred to MID as of the effective date, including among other assets, Santa Anita Park, Golden Gate Fields, Gulfstream Park (including MEC’s interest in The Village at Gulfstream Park, a joint venture between MEC and Forest City Enterprises, Inc.), The Maryland Jockey Club, Portland Meadows, AmTote International, Inc. and XpressBet, Inc. Certain of these assets remain subject to ongoing regulatory approval processes.
 
With respect to the non-real estate related MEC assets that have been transferred to MID, MID intends to later announce certain forbearance terms or funding limitations or other restrictions to be approved by the Special Committee with respect to any future investments by MID in, or funding to be made by MID in respect of, such assets.