LEXINGTON, Ky. (AP) - A top thoroughbred breeder in Kentucky is
filing for bankruptcy protection, listing nearly 70 (m) million dollars in debts and more than 300 creditors.
ClassicStar L-L-C filed for Chapter eleven bankruptcy yesterday in Lexington. Many of its top creditors were investors who are suing the company.
Former investors have sued ClassicStar, ClassicStar Farms and parent company GeoStar in five states over its mare lease program. The lawsuits claim that ClassicStar improperly diverted investors' money.
Some complaints claim the company inflated the value of its mares, leased more mares than it owned and tried to substitute cutting horses for thoroughbreds.
James Gardner, an attorney representing ClassicStar, says the
company is seeking bankruptcy protection because of the pending
lawsuits. ClassicStar Farms L-L-C was not included as part of the
bankruptcy filing. Companies in Chapter eleven bankruptcy operate under court supervision.
(Copyright 2007 by The Associated Press. All Rights Reserved.)