Fifth Third allows Zayat to retain control of stable
FIFTH Third Bank, who is suing prominent US owner Ahmed Zayat for $34.2 million in loans it says he owes, will not appoint a trustee to oversee Zayat Stables.
Ahmed Zayat leads in his Grade 1 winner Pioneerof The NilePICTURE: Getty Images
The moveallows Zayat to maintain control of his 200-strong stable, which includes Saturday's Fountain Of Youth Stakes winner Eskendereya, for the near future at least.
In a court proceeding on February 5, attorneys on behalf of the bank stated that they wanted a third party in control of Zayat's stable on the grounds that Zayat is not in a financial position to ensure the proper care of its horses.
However, the bank has since stated in a letter to Judge Donald Steckroth dated February 17, and obtained by the Lexington Herald-Leader, that it would not file a motion to proceed with removing Zayat's operation away from his control. That position may change in time.
Legal proceedings against Zayat by Fifth Third began last month after the bank claimed he had defaulted on payments. Zayat countersued the bank and filed for Chapter 11 bankruptcy protection.