Land Based Casino Issues Continue To Plague Atlantic City

Atlantic-City-CasinosThe once booming gambling town of Atlantic City has hit rough times over the past decade and 2014 has been tough, with four casinos having close their doors and a fifth to close this December. According to multiple reports, the Trump Taj Mahal will be closing on December 12th and will mark the 5th casino to close their doors this year in the state of New Jersey. The Board of Directors approved the closure of the casino for Trump Entertainment who previously closed the Trump Plaza back in September.

The Taj Mahal has been rumored to be closing for some time now but the announcement by Trump Entertainment now makes the closing official. The casino first needed to try and come up with a new deal to pay back creditors or bankruptcy was the next step. Carl Icahn is an investor who holds the majority of the debt and stated the he would invest an additional $100 million in the property if tax relief of $175 million was given to him by the state and Atlantic City.

This will most likely not happen and the closing date for the casino is set for just six days before a bankruptcy hearing is scheduled. With the closure of the casino, 3,000 people will be without a job, which brings the collective total of those without work due to casino shutdowns in Atlantic City to close to 11,000.

In other Atlantic City news, the firm that planned on purchasing the defunct Revel Casino has now backed out of the deal. According to a recent report at CardPlayer, the casino lost a deal for purchase of $110 million after Brookfield Asset Management canceled the deal. The group decided not to purchase the facility after payments to a utility company were going to be more than they bargained for. According to report, the amount due annually is over $24 million which includes equity and fixed debt payments that go back to 2011.

The Brookfield Company beat Glenn Straub, a real estate developer from Florida, who wanted the casino property for under $100 million, but he may not get his chance if he is still interested in the property. The Revel casino cost over $2 billion to build and has seen nothing but trouble since construction began, having filed for bankruptcy numerous times.

 

 

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