Pioneerof The Nile: one of Ahmed Zayat's best horses of 2009PICTURE: Matt Woolley/Equisport Photos
Bank seeks takeover of Zayat Stables
FIFTH Third Bank has gone to the courts to request that a receiver should be appointed to take over the racing stable of prominent American owner Ahmed Zayat.
Documents filed with the court claim that Zayat may not have enough money to properly care for his horses, according to a report in the Lexington Herald Leader.
The move comes after the bank filed a suit last month which claims that Zayat owes more than $34 million and demands revenue from collateral on loans, including prize money, stud fees and sales proceeds.
Zayat has filed a memorandum stating that he has obtained $5.2 million in unidentified financing.
A hearing into the case has been scheduled for February 8.
Zayat won $6.9 million in prize money in 2008 to make him the leading owner in America. His flagbearers on the track last year were triple Grade 1-winning sprinter Zensational, who he bought as a juvenile for $700,000, and his homebred Grade 1 Santa Anita Derby winner Pioneerof The Nile.
Thoroughbred Daily News reports that Zayat Stables lost $65.5 million from 2006 to2009 and expects a cash flow deficit of almost $3 million in 2010.