AURORA, Ontario — The largest horse track owner in the U.S. filed for Chapter 11 bankruptcy protection Thursday, saying it was unable to obtain new financing while supporting its existing debt.

Magna Entertainment Corp., whose operations include Baltimore's Pimlico racetrack that hosts the Preakness Stakes, the middle jewel of the Triple Crown, and the Meadows in Washington County, Pa., said it would continue to operate while it reorganizes under the supervision of the U.S. Bankruptcy Court in Delaware.

"Simply put, MEC has far too much debt and interest expense," chairman and chief executive Frank Stronach said in a statement. "MEC has previously pursued numerous out-of-court restructuring alternatives but has been unable to complete a comprehensive restructuring to date due, in part, to the current economic recession, severe downturn in the U.S. real estate market and global credit crisis."

Magna's other racetracks include Santa Anita in Arcadia, Calif., Golden Gate Fields in the San Francisco Bay area and Thistledown, near Cleveland.

The California Horse Racing Board has called a special meeting today to discuss the financial conditions of both Magna tracks and verify that funds held for the public and the industry are fully protected, board spokesman Mike Marten said.

MEC, parent company of the Maryland Jockey Club, has addressed its short-term liquidity concerns by obtaining a $62.5 million debtor-inpossession financing facility from a subsidiary of MI Developments Inc., a property-management company that is Magna's controlling shareholder as well as its largest secured creditor.

The financing is intended to provide MEC with sufficient liquidity during the Chapter 11 process, during which MEC said it will continue to operate without interruption.

"As far as are guests are concerned there will be no change to the operation," said Maryland Jockey Club president and chief operating officer Tom Chuckas.

"The employees will not have to worry about payroll and the horsemen's purse account is protected. This is a tough time and very unnerving but at the end of the day it will create a more positive environment and a much stronger company."