New hearing in Zayat case scheduled

A hearing is scheduled Wednesday in federal bankruptcy court in New Jersey on Fifth Third Bank's claim that top Thoroughbred owner Ahmed Zayat defaulted on plans to sell nine horses as a condition for using cash collateral to keep his stable running.

According to a filing by the bank, Zayat pulled four of the nine horses out of the April 5 sale at Keeneland without the consent of the bank. Because of that, Fifth Third said that Zayat should be prevented from further use of the cash, which is collateral along with the horses for more than $34 million in loans, which the bank claims are in default.

Zayat is scheduled to file a reorganization plan by the end of the week.