Zayat Stables has agreed to sell all of grade I winner and probable Kentucky Derby favorite
this year under a bankruptcy reorganization plan that projects all creditors will be paid in full by the end of 2014.
As part of the voluminous reorganization plan filed in New Jersey federal bankruptcy court April 16, Zayat Stables and its managing member and officer, Ahmed Zayat, project various income and expense scenarios under which creditors will be paid.
The documents project Zayat will have income from the sale of horses of $16.8 million, $15.2 million, $10 million, $11 million, and $11 million in 2010, 2011, 2012, 2013, and 2014, respectively.
"The projections assume that the debtor will sell a sufficient number of horses, including 100% of Eskendereya in 2010...A non-refundable deposit of $2 million is assumed to be received in September 2010 from the sale of Eskendereya, with the remaining Eskendereya proceeds assumed to be received in December 2010."
The projections do not place a value on Eskendereya (
Giant's Causeway --Aldebaran Light, by Seattle Slew), the winner of the Wood Memorial (gr. I) and Fasig-Tipton Fountain of Youth Stakes (gr. II) who is likely to be favored in the May 1 Kentucky Derby Presented by Yum! Brands (gr. I) at Churchill Downs.
Bred in Kentucky by Sanford Robertson and purchased by Zayat as a yearling for $250,000, Eskendereya has earned $725,700.
Zayat filed for bankruptcy protection earlier this year after Fifth Third Bank filed suit seeking payment on loans totaling more than $34 million. Zayat claimed bank lenders promised and then withdraw assurances that his loan portfolio would be extended; otherwise he would have sold a sufficient number of horses to satisfy outstanding loan obligations. The bankruptcy filing was designed to ward off efforts by Fifth Third to have the Zayat horses sold to satisfy the loans.