Baltimore-based real estate developer and casino operator The Cordish Cos. has arrived at a $3.5 million settlement agreement with the bankrupt owner of a racetrack and casino outside Indianapolis, according to court records.
On Monday, Indianapolis Downs LLC requested that a Delaware bankruptcy judge hold a hearing next week to approve the agreement, court records show.
If approved by a judge, the funds must be paid to Cordish by Aug. 22. Cordish would also have an unsecured non-priority claim to $12 million but would lose the right to any new claims if the settlement is approved, according to the agreement.
Cordish contracted with Indianapolis Downs in late 2007 to build and manage a gambling facility near a horse racing track in Shelbyville, Ind. Several months later, the parties also entered into a trademark agreement that allowed Indianapolis Downs to use marks owned or licensed to Cordish.
In 2010, Cordish's management contract was terminated because Indianapolis Downs was struggling financially, a result of enormous debts related to the cost of building the casino.
During the three years the management agreement was in effect, Cordish earned more than $16 million from operating the casino, according to the financial statements.
Cordish has sought millions of dollars from Indianapolis Downs since the agreement was terminated. A prior settlement agreement was withdrawn in November.
The racetrack and casino are scheduled to be auctioned later this month if acceptable bids are made for the property, according to court records.
Prior to the June opening of Maryland Live Casino at Arundel Mills mall, Cordish's only experience managing gambling operations were at the Indiana facility.