Court Approval of NYC Off‑Track Betting’s Bankruptcy Petition

On March 22, 2010, the United States Bankruptcy Court for the Southern District of New York ruled in favor of Cravath client New York City Off-Track Betting Corporation’s Chapter 9 bankruptcy petition. Objections to the petition were filed by the New York Racing Association, which manages the Belmont and Aqueduct race tracks, and certain other creditors. The Court held that, as a matter of New York constitutional law, Governor Paterson was empowered to authorize the filing by an Executive Order that he issued. The Court also ruled that New York City Off-Track Betting negotiated in good faith with creditors before filing, that such negotiations were impracticable and that New York City Off-Track Betting filed its bankruptcy petition in good faith.

The lawyers involved in this matter include associates Jasse S. Tomer, Jonathan D. Fazzone and Robert Earl Benson Jr. on restructuring matters and partner Antony L. Ryan and practice area attorney Paul E. Rosenthal on litigation matters.