Even though there were several major casino bankruptcies this past year, including such high-profile examples as Station Casinos and Trump Entertainment, most operations continued with business as normal at the gaming floor. However the Resorts Casino Hotel, the primary casino to open in Atlantic City when New Jersey legalized casinos, not just may fit bankrupt, but actually close down.Other casino operations still return earbnings, and only wish to rid themselves of onerous debt to recover their viability. Which means that Trump and Stations casino gambling continues apace, even while lenders and owners negotiate settlement against credit covenants.
But Resorts is in worse condition than others. The casino has not made a mortgage payment in almost a year. The casino's operators have filed a request with regulators to present the company's lenders control and ownership of the historic gaming venue.
"Resorts has experienced the similar downdraft of their cash flows as all other Atlantic City operators," analyst Andrew Zarnett told the Philadelphia Inquirer. "However, by being probably the most smaller operators within the market, as opposed to reduced profit, they've experienced absolute losses ."
Regulators are expected to make your mind up this week whether to permit the transfer of ownership, something that hasn't ever happened in Atlantic City. The Cosmopolitan Casino in Las Vegas was taken over by Deutsche Bank, however the resort was still within the means of construction and still has not opened.
If the gaming board denies the transfer, owners is probably not capable of keep the doors open at Resorts much longer, causing the closure of a landmark within the Atlantic City gaming business.
Published on September 12, 2009 by MattMiller
Read More... [Source: Atlantic City Casino News]
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