Calumet Farm Files For Bankruptcy
LEXINGTON, Ky. - Calumet Farm, which has produced a record eight Kentucky Derby winners, filed for protection from creditors in U.S. Bankruptcy Court yesterday as it seeks to find a buyer.
Calumet produced two of the most famous horses in the history of thoroughbred racing, Whirlaway (1941) and Citation (1948), both Triple Crown winners.
More recent Calumet champions include Alydar, second to Affirmed in each of the Triple Crown races in 1978, and Criminal Type, 1990 Horse of the Year.
The Chapter 11 petitions will enable the farm to avoid paying creditors while getting its finances in order. Calumet Inc. listed liabilities of $118 million to 78 creditors, and Calumet-Gussin Ltd. listed liabilities of $16.98 million.
"The reason we chose to do this was that we're in a position where we had no more cash to operate," said John T. Ward Jr., the farm's president and chief operating officer.
The 880-acre farm west of Lexington operated until 1982 under Lucille Wright Markey, who built it with her first husband, Warren Wright Sr. When Markey died, the heirs chose J.T. Lundy, married to one of Lucille Markey's granddaughters, as Calumet president.
Lundy was forced to resign April 3.
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