HORSEPLOP.COM
General Category => Harness Racing => Topic started by: Grandstand Handicapper on August 27, 2026, 04:05:53 PM
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From TDN.....
https://www.thoroughbreddailynews.com/citing-gross-mismanagement-and-human-cost-u-s-trustee-seeks-to-force-hawthornes-bankruptcy-to-chapter-7/
An excerpt from the article..... a filing from the acting US Trustee.....
In a Wednesday filing, acting U.S. Trustee Adam Brief wrote that Hawthorne's owners, the Carey family and their related companies, should be stripped of their status of “debtors in possession” by either dismissing the Chapter 11 bankruptcy proceedings or converting them to a Chapter 7 designation.
That would mean the Careys no longer have control over sale proceeds from the track or other remaining assets that might get liquidated to pay off creditors under the auspices of an independent trustee.
“The record demonstrates that there are continuing losses, there is no likelihood of rehabilitation, and there continues to be gross mismanagement of the estates, all of which militate in favor of dismissal or conversion,” stated the U.S. Trustee's motion to dismiss or convert that was filed Aug. 26 in United States Bankruptcy Court for the Northern District of Illinois.
Good! Throw them out and don't give them control over the proceeds. They have shown they can't be trusted.
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Saw an article today about Hawthorne and it stated that the Track was purchased by the DATA CENTER VULCHERS! INTERESTING....VE RY INTERESTING!
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if the Careys debt on this mess is over $100 mil and the sale is for $90 mil.....
how could any judge or settlement allow the Careys to get their hands on any money?
so they can file for another bankruptcy?
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I didn't think they should control or even remotely have any say in where money went throughout this entire process. I don't understand the legal nuances and the procedural aspects of a complex bankruptcy, but apparently that's the way it goes when you are a "debtor in possession" However, their behavior from even well before the bankruptcy gave more than enough concern to remove the from control of the money. Better late than never! I hope they get thrown out and the proceeds are controlled by the US Trustee.