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Indiana Downs owner halts lawsuit amid bankruptcy

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Cordish Cos., a real-estate developer trying to build a casino near Baltimore, must temporarily halt a defamation lawsuit against the chief executive officer of Shelbyville casino owner Indianapolis Downs LLC, a federal judge said Tuesday.

U.S. Bankruptcy Judge Brendan Linehan Shannon on Tuesday granted a request to suspend legal action against CEO Ross J. Mangano, saying the lawsuit would disrupt the company’s Chapter 11 bankruptcy. Indianapolis Downs owns the Indiana Downs horse track and Indiana Live casino.

Cordish filed suit in February, claiming it was defamed by competing casino companies and their executives, including Mangano, casino owner Penn National Gaming Inc. and horse-track owner Frank Stronach.

Mangano and Stronach allegedly were “part of an ongoing campaign designed to smear, defame and otherwise falsely portray the Cordish entities for the purpose of harming them economically and influencing both the Maryland state Legislature and lottery commission,” according to the suit.

Baltimore-based Cordish needs the support of the commission and state lawmakers to open its proposed casino. The company is fighting horse-track owner Indianapolis Downs in bankruptcy court in Wilmington, Del., over a management contract between the companies.

The Indiana Downs track opened in 2002, and the casino began operations in 2008. It has 2,000 slot machines and electronic table games. Revenue in 2010 was $270 million.

Indianapolis Downs filed for bankruptcy in April after failing to pay interest on time on $375 million in second lien notes, the company said in court papers. Last week, the casino laid off about 30 members of its 800-person staff.

Indianapolis Downs denied Cordish’s allegations in court papers. In a statement in February, Stronach’s company, MI Developments Inc., called the suit meritless.

Shannon’s order doesn’t prevent Cordish from pursuing its case against Stronach and the other defendants who are not involved in the bankruptcy.

 

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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