The Real Deal New York

OTB allowed Chapter 9 protection

March 23, 2010 02:45PM

New York City Off-Track Betting Corp won’t be leaving Chapter 9 bankruptcy protection anytime soon, thanks to a bankruptcy court ruling today, according to Bloomberg news. The court order goes against the wishes of the New York Racing Association, an OTB creditor which claims that the corporation is using the protection to avoid payments without any legitimate business prospects. The Chapter 9 protection, which is a code applying to municipal organizations, will allow OTB to reorganize its debt or liquidate its assets. The corporation, which contains more than 1,300 employees and operates 68 betting locations across the city, including a newly-renovated location at 245-19 Jamaica Avenue in Queens, filed for bankruptcy Dec. 3, 2009.

Comments are closed.