Judge denies 5/3 breach claim in Zayat case

5/3 can’t stay away from the ponies

A New Jersey bankruptcy judge found that Zayat Stables did not breach a cash collateral order by withdrawing four horses from the Keeneland April sale of selected two-year-olds in training on April 5.

Fifth Third Bank claimed Ahmed Zayat violated terms of the agreement by removing four of his nine horses from the sale without the bank’s consent.

Judge Donald H. Steckroth denied Fifth Third’s motion on Wednesday, two days after it was filed.

“It was a big triumph for us, and thank God,” Zayat said.

In his response to the bank’s claim, Zayat said he never committed to selling the horses in the sale.

In a court filing, Zayat said withdrawing the four horses was based on a “prudent business decision and advice from trainers and consignors regarding the horses’ maturation and readiness.”

Zayat contended that the breach claim was retaliation for a countersuit he filed against Fifth Third for what he called a “long-standing pattern of misleading, deception, and predatory lending practices.”

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One Response to “Judge denies 5/3 breach claim in Zayat case”

  1. Fifth Third Bank, saved from failure by gov’t welfare, buys up other failing banks. « Fifth Third Sucks Says:

    […] of this country.  You should be put down like one of the lame horses that you apparently love to invest in and lavish with sponsorship money. In the fourth quarter of 2009, the number of banks on the […]

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