STICKNEY, Ill. (WBBM Newsradio) – Hawthorne Race Course has secured a $16 million loan as part of its Chapter 11 bankruptcy reorganization, a move track officials hope will help stabilize finances and allow thoroughbred racing to return later this spring.
According to Casino Reports, the Stickney racetrack obtained the 120-day loan through JDI Loans under a debtor-in-possession financing arrangement, which allows the business to continue operating while it restructures and works to repay creditors.
Track leaders say the funding will help begin paying outstanding debts and could allow a thoroughbred racing schedule to begin as early as April 19. The proposed schedule must still be approved by the Illinois Racing Board.
During recent bankruptcy proceedings, a federal judge agreed that thoroughbred horsemen should be prioritized for repayment ahead of harness racing participants to improve the chances of holding a racing meet this year. Nearly $1.4 million in thoroughbred horsemen funds had been frozen, and the track had issued about $282,000 in bounced checks.
The Illinois Thoroughbred Horsemen’s Association said in a statement it is “cautiously optimistic” that access to more than $1.6 million tied to frozen accounts and unpaid checks could be resolved within about 10 days.
Meanwhile, the Illinois Harness Horsemen’s Association said its members should still receive the money owed to them, though the payments require additional review as part of the bankruptcy process.
Hawthorne has also been pursuing a long-planned $400 million racino development at the track property. The venue received preliminary approval from the Illinois Gaming Board in 2020, but progress has stalled as track leadership has sought investors to help fund the project.
Hawthorne Race Course, which opened in 1891, is the only horse racing track operating in the Chicago area.