Magna Entertainment Corporation Chapter 11 proceedings

On March 5, 2009, Magna Entertainment Corp. (NASDAQ: MECA; TSX: MEC.A), together with certain of its wholly-owned subsidiaries, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

Although Magna Entertainment's management is based in Canada and the company has assets in Canada, the Ontario Superior Court of Justice granted recognition of the US proceedings and ordered a stay of proceedings in Canada under section 18.6 of the Companies' Creditors Arrangement Act, in order to avoid the restructuring being supervised in multiple jurisdictions by multiple decision makers.

Pursuant to the Bankruptcy Code, the United States Trustee is authorized to appoint a committee of creditors holding unsecured claims as soon as practicable after the filing of a case. On March 18, 2009, the United States Trustee appointed the Official Committee of Unsecured Creditors of Magna Entertainment Corp., et al.

Fasken Martineau is Canadian counsel to the Official Committee of Unsecured Creditors with a team led by Jon Levin and including, among others, Edmond Lamek, David Hausman, Tracy Pratt and Conor O'Neill.