Horse owner Zayat says he has reached agreement with bank to keep stable running
By APThursday, March 4, 2010
Zayat Stables, bank reach preliminary agreement
LEXINGTON, Ky. — Prominent thoroughbred owner Ahmed Zayat says he has reached a preliminary agreement that he hopes will keep his stable operational amid its legal dispute with a bank.
Among Zayat’s horses is Eskendereya, an early favorite for the Kentucky Derby.
Zayat said the agreement reached this week with Fifth Third Bank allows Zayat Stables to spend its cash on hand in accordance with a budget set by a court. The bank also has extended a line of credit to let the stable conduct normal business.
Fifth Third Bank alleged in a lawsuit filed in December in U.S. District Court in Lexington that Zayat Stables defaulted on $34 million in loans. Zayat filed for bankruptcy protection on behalf of the stable Feb. 3.
