Wednesday, September 30, 2009

Attractions Hippiques provides its creditors with restructuring plan

RSM Richter Inc., the Court-designated Monitor, today provided creditors with the Attractions Hippiques restructuring plan, which it recommends that they accept.

    The plan has four major objectives:

    - Reimburse a portion of the debt to creditors
    - Preserve as many jobs as possible
    - Maintain horse racing at Sulky Québec
    - Continue simulcast transmission of races for Quebec racing fans.

According to the business plan, live racing will resume at the racetrack in Quebec City. Attractions Hippiques, which had already made major cuts to its operating cost structure, plans to make other reductions to its expenses with the goal of making its operations profitable and ensuring its healthy growth, which will benefit the industry. It offers creditors the opportunity to share in the distribution of $1 million. This is decidedly a more advantageous outcome than bankruptcy.

The disappointing performance of the Quebec City and Trois-Rivières Ludoplexes, as well as the absence of a Ludoplex at a new racetrack that was to be built north of Montreal, undermined Attractions Hippiques' financial situation. Without the anticipated revenues from the Ludoplexes, Attractions Hippiques had no other choice but to make sweeping changes to its business plan in order to ensure its survival.

The plan provided to creditors will ensure the continued existence of the company and of this industry. If the plan were rejected, Attractions Hippiques would most likely face bankruptcy, the consequences of which would be the definitive and permanent shutdown of Quebec's horse-racing industry. The creditors' general meeting is scheduled to take place October 22, 2009, in Montreal.