09/14/2002 12:00AM

Blue Ribbon in Chapter 11


Race Horses Inc., which owns Blue Ribbon Downs in Sallisaw, Okla., filed for Chapter 11 bankruptcy on Sept. 6, officials from the track informed the Oklahoma Racing Commission. Racing operations at Blue Ribbon will continue during the bankruptcy proceedings.

Blue Ribbon's filing came three days before foreclosure proceedings on the track were expected to begin. Sallisaw Municipal Authority filed a foreclosure suit against Race Horses, Inc., in February after the ownership group missed a final deadline to pay four quarterly principal interest payments totaling $270,000.

The authority had made a $2.45 million loan to Blue Ribbon.

The bankruptcy filing is not a first for the track, which sought such protection in 1997 and successfully came out of bankruptcy. The track is in the midst of a mixed meet that runs through Nov. 24.