Business

Zayat's plan with bank gets judge's OK

A federal bankruptcy judge in New Jersey on Monday approved an agreement between top Thoroughbred owner Ahmed Zayat and Fifth Third Bank that allows Zayat to continue operating normally through May 1, the day the Kentucky Derby will be run.

Zayat's Eskendereya is a leading contender for the Derby.

According to the agreement, Zayat and the bank must agree upon a list of 2-year-old horses and racehorses to be sold "at a commercially reasonable time during the Spring 2010." The proceeds will be placed in escrow.

By 5 p.m. Tuesday, Zayat is to propose terms for settling all issues, with the bank responding by noon Friday. Zayat is to file a reorganization plan to emerge from bankruptcy by April 16.

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