Eckstein Comments to Reuters on Settlement in Magna Entertainment Case

Corporate Restructuring and Bankruptcy partner Kenneth H. Eckstein was quoted in a Reuters article about the settlement reached between the controlling shareholder of Magna Entertainment and the official committee of unsecured creditors. Kramer Levin represents the official committee of unsecured creditors of Magna Entertainment Corporation and certain of its affiliates. The committee of unsecured creditors had filed suit in 2009 concerning $125 million in fraudulent transfers against Frank Stronach, who controls MI Developments Inc., the majority shareholder of Magna. Mr. Eckstein was quoted as saying that the agreement, in which MI Developments will pay the unsecured creditors $76.5 million in cash and $20 million from the sale of a race track in Texas, should make Magna's exit from bankruptcy possible within the next few months.