Magna Entertainment Corp., which owns Gulfstream Park Racing & Casino in Hallandale Beach, is facing default on loans, according to a company statement.

Magna's parent company, MI Developments, denied a reorganization proposal this week that would have infused it with cash. Frank Stronach is chairman of both companies, but the MI board of directors rejected the plan.

Magna is in danger of defaulting on about $300 million in loans, all of which are due by March 20 or earlier. That includes a $100 million loan to help develop a $1.2 billion shopping center and entertainment complex at Gulfstream Park, called The Village.

Gulfstream vice president Steve Calabro said Thursday the news would have "zero effect" on Gulfstream. The company next week plans to announce more than two dozen of the 70 restaurants and shops that will go into The Village, which is expected to open this fall.

"The casino is still cooking, jackpots are being paid and our promotions are still exciting as ever," he said.

Gulfstream, which has hosted horse racing since 1939, opened a casino in 2006. Magna's stock had a 52-week high of $20, but has dropped to 38 cents per share.

Because the stock is below a buck, it faces delisting, the Toronto Star reports. And the Baltimore Sun target="new"looks at what could happen next.

Part of the problems go to Maryland, where Magna failed to include a required $28.5 million license fee as part of an application for slots at its track there. Noted horse racing writer Andrew Beyer tells about the situation in Maryland. One note: if you think Florida's 50 percent slot tax is bad, well, Maryland has a plan for a 67 percent tax when slots go in.