A $1.5 million settlement is on the table for the personal bankruptcy case of Ahmed Zayat, reports the Thoroughbred Daily News. The settlement, which would be paid by Zayat's brother, Sherif Zayat, is due to be ruled on by a judge in a New Jersey federal bankruptcy court on July 6.
Zayat's trustee Donald V. Biase said that the settlement would “resolve all claims and causes of action” related to the multiple mortgages on Zayat's home.
However, there remains a debt of $19 million, including to trainers, farms, bloodstock businesses, veterinarians, and equine transportation companies. These “non-priority unsecured claims” are far down the list of creditors to be paid out, based on Chapter 7 bankruptcy rules.
There is a separate bankruptcy case pending against Zayat's racing business, Zayat Stables, LLC, which overlaps a number of racing-related creditors.
Read more at the Thoroughbred Daily News.
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