Top US owner sued for unpaid loans.

Its only beer money?

Top US owner Zayat sued for reported $34m


USA: Leading owner Ahmed Zayat, whose Zayat Stables last year topped the table in prize-money earnings in the US, is being sued for a reported $34 million in alleged unpaid loans.

Egyptian-born Zayat, whose Pioneer of The Nile was saddled by principal trainer Bob Baffert to finish second in the Kentucky Derby, has been sued by Lexington-based Fifth Third Bankin a suit alleging the owner defaulted on loans in failing to make payments in March and July.

Fifth Third bank said it had notified Zayat in August that the loans were in default and at that time requested financial information that was never given.

The bank also asked for revenue from the collateral on the loan, including earnings from horses in training and stud fees.

The Lexington Herald-Leader reported that Zayat came forward with a security interest in some bloodstock and stallion shares.

Yet as of December 14, the newspaper reported that Zayat owed Fifth Third Bank a total of $34,265,970, plus $190,505.11 in interest.

Fifth Third Bank said that Zayat also had prevented bank-selection consultants from evaluating Zayat Stables, even though such action was allowed by the security agreement for the loan.

Zayat was the seventh-leading buyer at the Keeneland September yearling sale, spending some $3,064,000 for 21 horses.

He caused quite a stir at the 2005 September yearling sale when he bought Maimonides, now at stud, for some $4.5m,

Zayat sold 70 horses at Keeneland in November of 2007, including Mushka for $2.4m, Baroness Thatcher for $1.8m and J Z Warrior for $1.125m.

Keeneland spokesman jay Blanton said of Zayat: "He is in good standing with Keeneland. He has met all his present commitments to us."

In 2008 Zayat Stables earned $6.9m in the US, where they won 116 races, including Pioneerof The Nile's Santa Anita Derby win.

Egyptian by birth, Zayat is said to have made his fortune on the sale of Al Ahram Beverages Company to Heineken International and he also is listed as the largest shareholder in Misr Glass Manufacturing, the leading manufacturer of glass containers in Egypt.

His Zayat Stables is registered in Delaware while Pioneerof The Nile Ltd. is registered in the British Virgin Islands.

None of these big shots have any money,least we know what little cash we own is really ours!!!

Zayat Stables faces liquidation over debts

USA: Zayat Stables, the leading owner in North America in 2008 and third in the owners' list last year, faces liquidation and legal action to transfer control of its 200 horses from owner Ahmed Zayat to a court appointed receiver.

On February 8, a court in Lexington, Kentucky, will hear an application by Fifth Third Bank to place Zayat Stables in the hands of a receiver, on the grounds that Zayat is not in a financial position to ensure the proper care of the horses.


Zayat Stables, which lost an estimated $65 million between 2006 and 2009, is alleged to owe the bank over $34 million, and to have defaulted on payments due last year in respect of loans secured on Zayat's bloodstock interests. Zayat is said to have declinedto commit himself to cover the stable's projected cash deficit of $3 million this year.

Zayat acknowledges "serious financial challenges" requiring an "orderly liquidation" of the business but denies that the care of the horses is compromised and claims to have secured over $5 million in additional financing to continue running the stable.

Zayat, 47, an Egyptian born businessman, set up Zayat Stables in 2005, when he paid $4.6 million for the yearling Maimonides.

Last year, the stable's flagship representatives, both trained by Bob Baffert, were Pioneerof The Nile, who finished second in the KentuckyDerby after winning the Grade 1 Santa Anita Derby, and multiple Grade 1 winning sprinter Zensational.

Having severed his links with Bill Mott and Dale Romans, Zayat's trainers include Steve Asmussen, Todd Pletcher and Mike Mitchell.

Zayat, who spent $3 million on 21 yearlings at Keeneland's 2009 September Yearling Sales, maintains that plans to dispose of a substantial number of the stable's horses at auction last autumn were abandoned because Fifth Third Bank failed to honour "verbal and written assurances" that the loan would be restructured.

At the end of 2009, Zayat owned 276 horses, 170 of which were in training.

Leading US owner Zayat files for bankruptcy

USA: Zayat Stables, leading owner in North America in 2008 and third in the owners' list last year, has filed for Chapter 11 bankruptcy.

The move seeks protection from creditors while owner Ahmed Zayat restructures the organisation's debt.

At the end of 2009, Zayat owned 276 horses, 170 of which were in training.

The action comes in advance of a hearing on Monday when a court will rule on an application by Fifth Third Bank to place Zayat Stables in the hands of a receiver, on the grounds that Zayat is not in a financial position to ensure the proper care of its horses.

Zayat Stables is alleged to owe the bank more than $34 million and to have defaulted on payments due last year in respect of loans secured on Zayat's bloodstock interests.

The bankruptcy filing lists the 20 biggest unsecured creditors, headed by Darley Stud Management, owed $174,900.

Others on the list, together owed almost $1 million, include leading trainers Steve Asmussen, Todd Pletcher, Bob Baffert, Mike Mitchell, Nick Zito, Bill Mott and Rick Dutrow.

Including secured creditors, for whom the sums owed are not listed, there are about 100 creditors.

As well as Fifth Third Bank, these include the Keeneland Association, reported to have extended credit of more than $3 million to Zayat when he purchased more than 20 yearlings at last September's sales.

Zayat, 47, maintains that Fifth Third Bank failed to honour assurances that the loan would be restructured and that those assurances prompted him to abandon plans to sell horses at last autumn's sales.

Zayat Stables has been among the US's leading owners since its establishment in 2005. Last year, it owned Pioneerof The Nile, second in the Kentucky Derby after winning the Grade 1 Santa Anita Derby, and multiple Grade 1-winning sprinter Zensational, both trained by Baffert.