NEW ORLEANS -- The Fair Grounds has filed for Chapter 11 bankruptcy after losing a court ruling that will likely force the race track to pay horse owners more than $100 million.

Fair Grounds president Bryan Krantz said Friday's filing was necessary because the amount of the court judgment could be greater than the value of the track. Krantz said Saturday that racing will be unaffected and will start as scheduled, on Thanksgiving Day, as track officials pursue both the court case and a settlement with the horse owners.

"Basically, the Fair Grounds is financially sound except for the effect of this court decision," he said.

In April, the Louisiana Supreme Court ordered a state district judge to reconsider a 1994 lawsuit filed by the Louisiana Horsemen's Benevolent Protective Association against the Fair Grounds and Louisiana Downs in Bossier City.

The horse owners say the tracks are making too many deductions from video poker proceeds before paying horsemen in the form of additional purse money. The law requires the tracks to pay 50 percent of their net video poker revenue to horsemen after deductions.

In the suit, the horse owners said the tracks and state police, the agency which collects the revenue, improperly allowed five deductions before splitting profits with the horsemen.

Central to the case is what can be deducted. The tracks argued that franchise fees and contract fees for the machines should be among the amount not included in the horsemen's split.

In March 2001, a state district judge ruled in favor of the horsemen, but an appeals court ruled in favor of the tracks.

Krantz said the track will continue to argue its case in the lower court, despite the Supreme Court ruling. During the appeals process, the track will also try to reach a settlement with the horsemen, he said.

Louisiana's other race tracks -- Louisiana Downs, Evangeline Downs and Delta Downs -- have reached settlements with the horsemen.

Those tracks are all owned by casino companies; the Fair Grounds has been owned by Krantz's family since 1986.