Pimlico, Laurel Park in bankruptcy auction

WILMINGTON, Del., Oct. 15 (UPI) -- A U.S. bankruptcy judge approved the auction of Maryland's Pimlico Race Course and Laurel Park despite objections from the former owners.

Judge Mary F. Walrath gave the approval to Magna Entertainment Corp., the bankrupt owner of the Maryland tracks, provided potential buyers were required to keep the Preakness, the second leg of Thoroughbred racing's Triple Crown, in Maryland.

This satisfied concerns of the state and others in the horse industry who had feared losing the state's single largest sporting event, The Baltimore Sun reported.

The auction is to be held in mid-January.

Joseph De Francis and other former owners had argued the sale procedures would not consider the group's rights to slot machines and other alternative gambling at the racetracks, particularly at Laurel Park, the Sun said.

Magna, an Aurora, Ontario, gaming and horse racing company with several holdings in Europe and Australia, filed for Chapter 11 bankruptcy protection in March.

It withdrew a proposal to auction the tracks last spring, in part because the plan did not take into account Maryland's "right of first refusal" for the Preakness, which had a "chilling effect" on Magna's sale efforts, court papers filed by the company last week said.

Besides reviewing bids, Maryland now has the right to request it be allowed to match the winning bid from the auction, the Sun said.