Bankruptcy Judge Timothy Barnes has agreed to a formal order clearing the way for sale of Hawthorne Race Course to a developer, but the fate of backstretch workers and horses remains a sticking point.
After an early-morning hearing July 24, Barnes ordered attorneys for Hawthorne, the as-yet undisclosed buyer, and various creditors to complete a draft of a sale order for his approval. He also conditionally approved funding to wind up operations on the backstretch and relocate residents.
The money comes largely from voluntary contributions by the buyer and creditors. Barnes insisted on detailed accounting of how the funds will be spent and a weekly status report on the progress of the relocation.
Ross Fiedler, attorney for the buyer, a limited liability company based in Delaware, said it's an absolute condition of closing on the deal Aug. 31 that the backstretch be cleared.
"It is a condition of our ability to close that everyone be off the property," Fiedler said.
Hawthorne is also eager to end the monthly cash outlay involved in maintaining health and safety on the backstretch.
Hawthorne, facing a mountain of debt, bounced checks to horsemen and others, and suspension of its harness racing license, filed for Chapter 11 bankruptcy protection Feb. 27. The track managed to get its scheduled Thoroughbred meeting underway, albeit three weeks behind schedule, using interim bankruptcy funding.
Efforts to find a purchaser willing to continue racing and move forward on a long-stalled racino failed, leaving demolition and redevelopment as the only option. The only bid was $90 million, substantially lower than predicted by track officials.
Negotiations over disposition of the sale proceeds continue.
Hawthorne ran its final races July 19. Its demise leaves downstate Fairmount Park as the last operating track in Illinois.
