OTB Chairman Quits, Cites Failed Refinancing Plan

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    Meyer "Sandy" Frucher cited the collapse of his plan to refinance the bankrupt company as the reason for his resignation.

    The chairman of the state entity that handles all off-track betting on horse races in New York City has resigned, citing the collapse of his plan to refinance the bankrupt company.

    Meyer "Sandy" Frucher submitted his resignation to the governor Friday, on the eve of the Belmont Stakes.

    In the letter, Frucher said he decided to quit as chairman of the New York City Off-Track Better Corporation after the state's budget director said he wouldn't sign off on a plan to finance the company's turnaround with up to $300 million in municipal bonds.

    Gov. David Paterson appointed Frucher a year ago.

    The OTB has been operating under bankruptcy court protection and has threatened to shut down if state government doesn't bail it out.