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Zayat and Fifth Third reach agreement

ZAYAT Stables LLC will be able to use cash on hand for racing operations after the troubled American-based stable reached an agreement with Fifth Third Bank on Tuesday.

The agreement allows Ahmed Zayat to operate in accordance with a budget submitted to a bankruptcy court in New Jersey. Fifth Third has also allowed Zayat Stables the use of a line of credit with which to operate.

Ahmed Zayat & Pioneerof the Nile

Ahmed Zayat leads in Grade 1 winner Pioneerof The Nile

  PICTURE: Getty Images 

Zayat is requiredto provide the bank with a schedule detailing further repayments. Fifth Third will also draw up its own term sheet, which will be followed by a period of negotiation.

Fifth Third is suing Zayat - the owner of 200 horses including strong Kentucky Derby fancy Eskendereya - for $34.2 million in loans it says he owes. The bank started legal proceedings in January after Fifth Third claimed Zayat had defaulted on payments. Zayat countersued the bank and filed for Chapter 11 bankruptcy protection.

"I am pleased to have reached this interim agreement with Fifth Third as it is important to both of us that Zayat Stables focus on the business at hand," said Zayat in a statement. "It is my hope and desire that this temporary respite will allow us to resolve our differences to our mutual satisfaction."

 

 

 

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