A KENTUCKY court has dismissed an attempt by an American financial institution to seize the stallion El Kabeir from Gay O’Callaghan’s Yeomanstown & Morristown Lattin Studs in Naas, Co Kildare.

The O’Callaghans paid $500,000 to buy the Scat Daddy horse from Ahmed Zayat, the racehorse owner and breeder best known for campaiging Triple Crown winner American Pharoah.

Last month a receiver was appointed to Zayat Stables following an application by New York financiers MGG Investment Group who say Zayat Stables owes them $23 million. MGG claim that Zayat illegally sold breeding rights and horses - including El Kabeir - which he had pledged as collateral for his loans.

On Friday Judge Kim Bunnell dismissed MGG’s claim on El Kabeir, according to a report in Thoroughbred Daily News.

The judge said that MGG must first secure a judgement against Zayat before it can seek the return of assets disposed. The judge also said that if the claim is brought again, she may be inclined to dismiss it on the basis that the claim should have been made within two years of the sale.