ALBANY - The operator of New York's three thoroughbred racetracks emerged from two years of bankruptcy court protection Friday thanks to a $105 million state bailout.

As part of its deal with the state to keep the racing franchise for the next 25 years, the New York Racing Association is ending its ownership claim to property at Aqueduct, Belmont and Saratoga racetracks. The state will hold the deeds, ending a dispute that briefly threatened racing in the state.

NYRA has run Aqueduct, Belmont and Saratoga since 1955, and has been plagued for years by mismanagement and sinking revenues. In shedding the Chapter 11 protection from creditors, it will use the bailout to cover debts and operating expenses until it gets revenue from video slot machines at Aqueduct.

In the meantime, the not-for-profit is operating without slot machines, and NYRA chairman C. Steven Duncker said it could probably to do so for at least two years.

NYRA officials long complained they were unable to break even without collecting revenue from video slot machines. Many details - including when a slot machine operator will be named - remained unknown Friday.

The NYRA will offer improved tracks, amenities and bigger purses, Duncker said.

Money will also be used to improve conditions for horse walkers, grooms and other workers, whose treatment has been the target of a state Department of Labor investigation.

Officials also plan to increase steroid testing of horses.

As part of the bailout, the state is writing off tens of millions of dollars owed to it by the NYRA. The deal sets up a payment plan with $75 million going to creditors and $30 million going to the NYRA.

NYRA is required to pay the state an annual franchise fee by April 5 each year, but NYRA can delay payment if it's having financial problems.

On the Net:

http://www.nyra.com/

http://www.ny.gov/governor/