Judge grants Hawthorne additional time before auction
A federal judge in Illinois has agreed to allow Hawthorne Race Course additional time to take bids as part of its bankruptcy reorganization, according to the group representing horsemen at the track.
Judge Timothy Barnes approved a motion to extend the bid deadline from June 26 to July 10, with an auction of the property now scheduled for July 13, rather than July 7, according to the Illinois Thoroughbred Horsemen’s Association. The judge set July 20 as a date to approve a final bid.
Hawthorne’s legal team has told the judge that it intends to conduct a “stalking horse” auction, in which one anonymous bid will be approved by the court setting a minimum price and sale conditions. Competing groups will then be required to submit a bid in excess of the stalking horse bid and other competitors to win the auction.
Hawthorne filed for Chapter 11 bankruptcy in late February after years of struggling to stay afloat. Legislation passed by state lawmakers in 2019 allowed the track to build a casino on its property, but its financial struggles and disagreements among the dozens of descendants of founder Thomas Carey who have equity in the track have complicated plans to find a partner for the casino.
Judge Barnes earlier this year approved debtor-in-possession financing for the track, which allowed Hawthorne to begin conducting a live meet in April. Hawthorne has continued to struggle this year, with the track holding a total of 14 live races last weekend, attracting 79 horses, for total handle of $765,260, less than half what the track did for the same weekend last year, according to numbers compiled by Daily Racing Form.
During Monday’s hearing, Barnes also approved $1.9 million in additional funds from the track’s debtor-in-possession line of credit to maintain the live race meet through the auction date, according to the Illinois Thoroughbred Horsemen’s Association. Hawthorne did not distribute winning purses “over the last couple weeks,” according to the organization.
“We remain hopeful that the property will sell to a gaming entity that recognizes the enormous potential of Hawthorne as a racino entertainment destination,” the Illinois Thoroughbred Horsemen’s Association said in a statement to its members distributed on Monday night.
:: Want to learn more about handicapping and wagering? Check out DRF's Handicapping 101 and Wagering 101 pages.