ATLANTIC CITY, N.J. (AP) - Eleven hours of bidding for an
Atlantic City casino failed to produce a new owner for it on Tuesday.
The bankruptcy auction of The Atlantic Club Casino Hotel
will resume Wednesday. Participants would not say how many parties remain in
the running, cautioning that the number is subject to change.
The casino was formerly known as the Atlantic City Hilton.
It has struggled to compete with newer, larger casinos and with gambling halls
popping up in neighboring states.
Nearly two years ago, the casino adopted a value pricing
strategy, targeting low-rollers and residents put off by or unable to afford
pricier casinos. The casino's CEO, Michael Frawley, said that strategy is
working but not fast enough to help stave off a Chapter 11 filing.
A deal to sell the Atlantic Club to the PokerStars website
for $15 million fell through earlier this year. The two sides remain tied up in
litigation, and PokerStars has since aligned itself with Resorts Casino Hotel
to offer Internet gambling. But those plans hit a snag when state casino
regulators suspended PokerStars' application for two years, citing an
unresolved indictment against the company's founder.
In filings with the bankruptcy court, the casino listed
assets, excluding real property, of $17.1 million and liabilities of $16.8
million.
With the Atlantic Club's Chapter 11 filing, half of Atlantic
City's 12 casinos have filed for bankruptcy over the past six years. The
Atlantic Club joins Revel Casino Hotel as Atlantic City casinos that sought
Chapter 11 protection this year. Revel emerged from bankruptcy court in May.
Source: Philly.com
No comments:
Post a Comment