Penn National closes on Rosecroft sale
February 28, 2011
By Rachel Bernstein
Daily Record Business Writer
Penn National Gaming Inc. closed Monday on its sale of Rosecroft Raceway, but a bidder that lost the race track in an auction has filed a motion to reconsider the process.
A subsidiary of Penn National, Prince George’s Racing Ventures LLC, bought the Prince George’s County harness track for $11 million in cash. But Landow Partners LLC has made attempts to block the settlement and still contests the auction results.
“I’m not sure what they’re planning, but the closing went great,” said Michael J. Lichtenstein, the attorney representing Rosecroft trustee James J. Murphy. “We’re trying to move forward to get the creditors paid.”
The Maryland Jockey Club and other racing associations were the largest creditors in the case, with more than $1.7 million owed.
Landow Partners had bid $10.05 million in cash during a Jan. 28 auction for the race track, but lost out to Penn National’s $10.25 million bid.
But at a Feb. 2 hearing to approve the auction’s results, Landow Partners and Penn National both increased their bids at the last minute, and Judge Paul Mannes declared Penn National the winner of the sale. But Landow has now increased its bid to $13.5 million and is looking to reopen the bidding the process. Landow Partners filed a stay of Rosecroft’s settlement Feb. 24, but Mannes denied the order.
A hearing will be held March 22 on Landow’s motion to reconsider the decision made Feb. 2.
Saul M. Schwartzbach and Roger Frankel, attorneys for Landow Partners, could not be reached for comment.
Rosecroft filed for bankruptcy in June 2009, and the track closed a year later. Cloverleaf Enterprises Inc. previously owned the track.
Wyomissing, Pa.-based Penn National, which also owns 49 percent of the Maryland Jockey Club, said it will create a plan to resume live racing this fall.