foreclose on Resorts Atlantic City, there's more bad news involving casino/hotel properties in this troubled gaming mecca--specifically Tropicana and Trump. For one, the market value of Tropicana Atlantic City has just dropped sharply, although that could actually pave the way for the current ownership to keep the property.
As reported by GlobeSt.com, Tropicana Entertainment filed a reorganization plan earlier this month in an effort to forestall the local casino/hotel's forced sale, for licensing purposes, by state-appointed conservator Gary Stein. Stein has been actively negotiating with the Baltimore-based Cordish Co. for a sale.
The original offer by Cordish last year of $700 million in stock and cash was later reduced to $575 million all-cash. That has now been reduced further, according to a report by the Associated Press, but no one will say publicly just what the new offer is. A spokesman for Stein confirms the reduction, but offers no specifics.
One group not happy with the new offer is the Trop's creditors, who hold a $1.3-billion mortgage on the property. While not revealing the new offer, Gil Brooks, representing the creditors, tells the Associated Press that the new offer is "too low." Brooks could not be reached for comment.
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