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Nov. 22, 2008
Copyright © Las Vegas Review-Journal

Financial problems hit Resorts Atlantic City, Tropicana

THE ASSOCIATED PRESS

ATLANTIC CITY -- The worsening economy continues to batter Atlantic City casinos, with Resorts Atlantic City missing a crucial loan payment that could jeopardize the future of Atlantic City's first casino and the Tropicana Casino and Resort laying off 50 supervisors.

Those casinos have been among the hardest hit of Atlantic City's 11 gambling houses, and both lack the resources to compete with market leaders as the fight for every gambling dollar intensifies.

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    • Resorts' parent company, Colony RIH Holdings Inc., revealed in a filing this week with state casino regulators that it was unable to make its monthly interest payment to its lenders "due to the extreme impact of the current economic conditions."

    The amount of the required payment was not specified.

    The company said it is negotiating with the lender, Column Financial Inc., over a course of action. The two-year, $10 million loan is backed by a mortgage on Resorts, which opened in 1978.

    According to Colony's filing, the entire $10 million loan could become payable at once if the company can't reach a deal with the lender. It was not clear whether the privately held company has, or can raise, the cash to pay off such a demand.

    Company spokesman Owen Blicksilver declined comment.

    Dan Heneghan, a spokesman for the state Casino Control Commission, said regulators are aware of the missed payment, have been monitoring the company's financial condition and have been "in regular contact with officers at Resorts about this."

    The Tropicana said Friday it recently laid off 50 supervisors "due to the economic issues we are currently facing as a city and country," spokeswoman Diane Spiers said.

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    Paul Janoki wrote on November 27, 2008 07:54 PM: Only a dope would think that you could keep expanding casinos in more and more States and still keep the old ones profitable.... Greed has no bounds.

    Another point is that payouts kept falling for the past years until hardly a big winner was noticed on the floors.... Something stinks here too... re payout percentages.

    Paul


    Russ from N. J. wrote on November 22, 2008 04:06 AM: 2 down - 9 to go.

    Remember it's nice to be nice to your

    customers and they will be back. Take

    away the comps. and hired workers that

    don't care if you are there or

    not. Workers that complain about a

    little cigarette smoke, and how hard they work.

    I'll be in Vegas next month for fun and friendly people, workers that will take care of the visitor.


    Russ from N. J. wrote on November 22, 2008 04:02 AM: 2 down - 9 to go.
    Remember it's nice to be nice to your
    customers and they will be back. Take
    away the comps. and hired workers that
    don't care if you are there or
    not. Workers that complain about a
    little cigarette smoke, and how hard they work.
    I'll be in Vegas next month for fun and friendly people, workers that will take care of the visitor.