Friday, January 23, 2009

Now is the Winter of Our Discontent

Bad news came across the transom yesterday: Resorts Atlantic City has missed three mortgage payments, and their lender wants to foreclose on the property.

I knew things were bad -- real bad. But I didn't know that Resorts was this close to the edge. Trump Resorts has missed a payment, too, and that rumor about the Atlantic City Hilton closing are still floating around (though this affects them, too, since Resorts and AC Hilton are both owned by Resorts International Holdings).

So what does this mean? Not much right now. The Tropicana was taken over by the state in December 2007 and is still operating. The owners of Resorts are looking for someone to buy it but will most likely keep it in operation while they're looking.

The question for all of these casinos is who's going to buy them given how the city is hurting. Trump managed to unload Trump Marina this summer, but the numbers keep getting worse. Who knows. It's not pretty.

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Bridget said...

Woah. That's kind of really sad in a prostituty type of way.

Hampton said...

Hmmm. I'll be interested to see if the Gaming Commission uses this as a springboard for making Harrah's shed another property; The Resorts amalgamation of all the 3rd-world casinos was made possible due to monopoly worries when Harrah's bought Caesars, after all.

My guess is that Resorts, or the Hilton, or both, will become a pure slots parlor under new management, possibly foreign.

Thanks for the heads up, Jen!