Filing Alert: Hawthorne Race Course Chapter 11
Hawthorne Race Course Files Chapter 11 in Northern District of Illinois
Update (Feb. 27, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Hawthorne Race Course, Inc.
Hawthorne Race Course, Inc. and its debtor affiliates⁽¹⁾, a Stickney, IL-based operator of a horse racing track and network of 10 off-track betting facilities, filed for Chapter 11 protection on Feb. 27 in the U.S. Bankruptcy Court for the Northern District of Illinois.
The filing was precipitated by a liquidity crisis triggered by a $1.5 million judgment in favor of Churchill Downs, which resulted in the freezing of operating accounts by senior lender Signature Bank. This capital constraint forced the cancellation of the 2025-2026 harness racing season due to the debtors' inability to fund horsemen's purses, subsequently leading to the suspension of the Suburban Downs organizational license. The distress was compounded by the termination of a mobile sports wagering agreement with Fanatics and the severance of simulcast signal transmissions due to settlement arrears, causing monthly wagering deposits to collapse from approximately $5 million to under $1 million prepetition.
The debtors enter Chapter 11 with approximately $51.6 million in senior secured obligations to Signature Bank and a $5.0 million second-lien facility held by Latto Capital. The debtors intend to pursue a Section 363 sale process or recapitalization transaction, marketed by financial advisor Getzler Henrich, to maximize recovery for the estate.
To fund these proceedings and bridge to a sale, the debtors filed a motion to secure a $16 million DIP facility from JDI Loans LLC. The DIP budget prioritizes an immediate $3.91 million allocation to cure prepetition purse arrearages, a regulatory prerequisite for commencing the March 2026 thoroughbred meet and maintaining the contingent casino license. Additionally, the facility provides $750,000 for critical vendor payments designed to reactivate simulcast partnerships, which management projects will restore approximately $4.0 million in monthly collection volume.
Hawthorne Race Course, Inc. reports $50 million to $100 million in assets and $100 million to $500 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-03505.
⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Counsel:
- Barry A. Chatz
Saul Ewing LLP
Email: [email protected]
General Counsel:
- Carey White Boland Murnighan & Murray, LLC
General Regulatory Counsel:
- Greenburg Traurig LLP
Financial Advisor:
- Getzler Henrich & Associates
Signatories:
- Timothy Sean Carey – President
Claims Agent:
Equity Security Holders:
- Lucille Marie Mueller Trust – 7.2% Equity Interest
- Maeve Carey Mueller Trust – 7.2% Equity Interest
- Thomas G. Finn – 5.7% Equity Interest
- Margaret B. Jacob – 5.7% Equity Interest
- 56 Other Individuals Owning Less Than 5% Each – 74.3% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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