09/16/2010 2:14PM

Stonewall, creditor reach agreement


LEXINGTON, Ky. – Stonewall Farm and its single largest creditor, the Harleysville National Bank successor Stone Wall Acquisition, have worked out an agreement that appears likely to allow Stonewall to stand Value Plus and four other stallions at its Ocala, Fla., property.

SWA received a $16 million judgment earlier this year against Stonewall Farm owner Audrey Haisfield and related entities over loan defaults, and it had applied in a Florida bankruptcy court to seize and sell the Stonewall stallions Value Plus and Da Stoops. Court filings Sept. 15 in the Jacksonville bankruptcy court reveal that SWA and Stonewall have now come to an agreement under which SWA will sell five Stonewall stallions to an entity owned by Haisfield’s son Marc, Family Broodmares, for a total payment of $487,500. The five stallions are Value Plus, Da Stoops, British Blue, Frisco Star, and Unforgettable Max.

From a $50,000 deposit on the purchase, SWA will pay $15,575 still owing to the Breeders’ Cup for 2009 nomination fees for Value Plus and Da Stoops. In addition, SWA will receive three irrevocable lifetime breeding rights in each of the stallions, for a total of 15 lifetime rights. SWA will then partially release any liens to those stallions, but will retain “all rights to products and proceeds thereform” under the agreement.

The closing date for the stallions’ sale is Oct. 15. If the transaction is not completed by then, under the agreement SWA can put the stallions up for sale privately or at auction.

The agreement is subject to the bankruptcy court’s approval.