News

Stonewall Farm entities file for bankruptcy

Five Stonewall Farm business entities filed for Chapter 11 bankruptcy protection this week. The entities own stallions Leroidesanimaux and A.P. Warrior, as well as some other breeding interests, including a half-share in A.P. Indy.

A hearing is scheduled Tuesday in U.S. Bankruptcy Court in Lexington in the cases. Stonewall Farm attorney John Hamilton said the farm and its owners, Richard and Audrey Haisfields, have asked to consolidate the five cases into one.

The bankruptcy filings come after the farm has been sued by two Lexington banks. In light of the bankruptcy filings, a move by JPMorgan Chase bank to appoint a receiver for the Midway farm's horses and stallion shares has been stayed. Chase has alleged in a lawsuit filed in Fayette Circuit Court that the Haisfields and their businesses owe more than $7 million on loans.

Hamilton said a group of broodmares, 2-year-olds, yearlings and weanlings not covered by the bankruptcies will be turned over to Chase to sell, but the stallions are being relocated to the Haisfields' Florida breeding operation.

Chase had sought to seize those stallions, which are collateral for some of the loans.

Stonewall already turned over a group of horses to Fifth Third Bank, which sued in May, alleging the farm owed more than $14.85 million.

  Comments