Churchill Downs Inc. sewed up a deal with a Louisiana Horsemen's group and Fair Grounds Corporation minutes before a midnight deadline Tuesday that will allow it to purchase the assets of Fair Grounds Race Course in New Orleans for about $47 million.

On Aug. 14, Churchill declared it had pulled out of talks to acquire the New Orleans track, and as recently as Friday, the horse owner Mike Pegram appeared to have wrested control of negotiations. But Churchill slid quietly back into the picture last Thursday, issued a formal offer to Fair Grounds on Saturday, and at 11:58 p.m. Tuesday inked a deal with the Louisiana Horsemen's Benevolent and Protective Association that is likely to give CDI control of the track this fall.

Pegram was offered the chance to submit a competing bid, but declined.

Fair Grounds is operating in Chapter 11 bankruptcy, and the CDI deal must still pass through bankruptcy court. Bankruptcy attorneys working for Fair Grounds are to file an amended reorginization plan with the court by Sept. 8, and the plan is to be confirmed by the court by Sept. 21, according to Douglas Draper, a bankruptcy attorney for Fair Grounds. The Churchill deal is scheduled to close on or before Oct. 15.

When the deal closes, Fair Grounds will pay in full all its creditors with undisputed claims against the track, including the La. HBPA, which is owed $25 million. The La. HBPA won a lawsuit against Fair Grounds concerning video poker machine revenue distribution and was awarded an $89.9 million judgment, leading the track to file for bankruptcy. Last month, Fair Grounds and the horsemen's group reached a $25 million settlement agreement.