Zayat: Lender's lawsuit an 'aggressive attack on the horse industry'

February 13, 2020 06:20pm
Zayat: Lender's lawsuit an 'aggressive attack on the horse industry'
A day after reports surfaced of a New York-based lending firm's allegations that Ahmed Zayat and his family took part in a "fraudulent scheme" to sell off breeding rights to Triple Crown winner American Pharoah, Zayat countered.

Zayat, in a statement through his attorney, said "we are disappointed but not surprised" with MGG Investment Group's "aggressive attack on the horse industry."

MGG claimed that, because breeding rights were used as collateral on a $23 million loan, the Zayats should not have sold them, and that organizations such as Coolmore, which stands American Pharoah and purchased the stallion seasons, and other were aware of Zayat's financial situation.

"Zayat Stables said from the beginning that it wanted to liquidate certain assets to generate enough proceeds to pay off all of its creditors," Zayat's statement said. "Motivated purely by self-interest and greed, MGG, however, was more interested in litigating this dispute at the expense of other creditors. MGG has gone as far as filing baseless claims against reputable horse farms and bloodstock agents."

LNJ Foxwoods, which campaigns the Eclipse Award-winning sprinter Covfefe, was among the groups named in MGG's amended lawsuit, which seeks to take back Zayat's horses and other assets sold.

"This conduct demonstrates MGG’s fundamental lack of knowledge of the horse industry and complete lack of respect for the parties essential to its success," the statement continues. "Zayat Stables is doing everything it can to ensure that all of its debts are repaid, but MGG has placed itself above all others and has made it nearly impossible for other creditors to be treated fairly.”

Fayette County Circuit Court in Kentucky approved a motion by MGG to appointed a third party receiver to assume control of Zayat Stables as the legal battle wages forward.

RELATED: Lawsuit claims Zayat wrongly sold assets

 

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