State V/s Agency — Who Wins?
January 9th, 2007By Priya Jestin, Staff Writer
The state of New York doesn’t seem too happy with the New York Racing Association’s request for protection under Chapter 11 bankruptcy. It has filed a motion in federal court to dismiss the request because NYRA is not eligible to be a debtor under the bankruptcy code. The basic point here is that NYRA is supposed to be an "instrumentality" of the state and a "public agency" and hence, is not eligible to seek protection.
NYRA, a nonprofit company formed in 1955 has even sued the state after filing for bankruptcy. Its contention is that the association was insolvent in part because of the state’s failure to provide loans that had been approved by the legislature. Now, that’s what I call a Big Fight. Wonder if the people who work for the state and the agency are not appointed for the benefit of the state. So why should they be bickering among themselves?
If you want a more in-depth report, you could check out this ESPN story.