Report: Judge approves release of Hawthorne purse funds
A federal bankruptcy judge on Tuesday approved the release of $1.11 million in purse funds to Thoroughbred horsemen at Hawthorne, according to the Daily Racing Form.
Judge Timothy Barnes of the U.S. Bankruptcy Court for the Northern District of Illinois granted a motion giving horsemen access to money in their purse accounts that had been frozen after Hawthorne ran out of funds to pay purses during its Standardbred meet earlier this year.
Barnes also approved the repayment of $281,844 in bounced checks issued late last year and earlier this year, according to the report.
Tuesday's hearing marked the third in eight days related to the track's Chapter 11 reorganization. Hawthorne has secured $16 million in debtor-in-possession financing, and the proceedings have centered on how best to deploy those funds.
The track's conversion from a Standardbred surface to a Thoroughbred surface had barely begun as of Monday, according to David McCaffrey, executive director of the Illinois Thoroughbred Horsemen's Association. Officials informed Barnes that Thoroughbred racing at the track could not realistically resume before April 18 – a significant delay from the original March 29 target. As recently as last week, the track had suggested a meet could begin in the first week of April.
Hawthorne also told the court it has begun contacting other racetrack operators about delinquent simulcast bills and that several companies are close to restoring signals to the track and 12 off-track betting parlors it operates in the Chicago area.
The track filed for bankruptcy with the stated goal of reorganizing to find a buyer or partner capable of building and opening a casino. Illinois passed legislation in 2019 allowing tracks to operate casinos, but disagreements among Hawthorne's stakeholders – including dozens of members of the Carey family, which has operated the track for 117 years across four generations – and deteriorating finances have prevented any casino development. Under the 2019 law, tracks must host live racing to obtain a casino license.