Chicago Racetrack Bankruptcy Loan Bid Hit With Creditor Pushback

Hawthorne Race Course Inc., a cash-strapped 135-year-old horse racing venue near Chicago, should be required to extend its marketing and sale process in order to borrow $16 million in bankruptcy, a group of unsecured creditors said.

Hawthorne has agreed to terms of a 120-day bankruptcy loan from JDI Realty that would greatly compress a potential asset sale timeline and jeopardize the prospect of meaningful recoveries for unsecured creditors, the official committee said in an objection filed Tuesday in the US Bankruptcy Court for the Northern District of Illinois.

Hawthorne’s secured lenders, owed nearly $60 million, are likely to be paid ...