12/15/2010 5:30PM

New York City OTB takes step toward permanent closing

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New York City Off-Track Betting Corporation asked a federal judge to dismiss its Chapter 9 bankruptcy petition on Wednesday, according to a filing with the court that stated the company is seeking to close permanently.

The filing came one day after the company’s chief executive, Greg Rayburn, said that the company does not believe that legislators will agree to a plan that would rescue the operation after it closed Dec. 8 following the dismissal of legislation that would allow the company to implement a reorganization plan.

“NYCOTB intends to complete closure and cessation of operations and has concluded all efforts to seek confirmation of a plan of debt adjustment,” the filing said.

If the petition is approved, the debts owed to creditors by New York City OTB would be effectively reduced to zero. The company had one asset of value prior to closing Dec. 8 – its account-wagering operation – but the worth of that asset has dropped dramatically as customers of the operation have withdrawn their money and opened accounts with competing platforms.