The Equine Industry
Even the Horse Capital of the World is not resistant to the economic downturn faced in the past few years. While the equine industry has always been a business filled with risks, those risks have mounted. With fewer people having the economic flexibility and confidence to invest money into a horse, stables across the Bluegrass have felt the strain. Horse racing to some is a fun hobby while to others it is a way of life—the differences between the multi- millionaire farms and the small farms are many. Sales have been seeing decreased numbers and horses are no longer selling for the prices they once fetched. As members of the equine industry continue to face several financial challenges, primarily due to loss of income, costs increase and profits are down. Bankruptcy will continue to be a strategy utilized by the industry to deal with bad debt and decreased profits.
In this current economic climate, Chapter 11 bankruptcy can be a useful tool to restructure debts or provide a method to sell assets and wind down operations. The attorneys of DelCotto Law Group PLLC have extensive experience in the equine industry to realize appropriate goals during difficult financial times. Specific issues we have seen and which should be analyzed and addressed include:
- Lease Assumption, Rejection or Assignment
- Analysis of all liens including vets, breeding, etc.
- 363 sales
- Lien perfection issues involving jockey club papers
- Priority disputes between agister liens and bank liens
- Syndication and share disputes
- Insurance adequacy and availability
- Critical venders and 503(b)(9) claims