Ask a Local Attorney
Over 500,000 FREE Answers so far!

Free Legal Questions & Answers
(120 characters remaining)
No registration! No obligations! Completely FREE!

Popular Atlantic Club Casino Files for Bankruptcy Protection

Published on 11/08/2013 -

By

Another Atlantic City casino is filing for bankruptcy this week, after years of declining revenues have taken a significant bite out of the region’s struggling casino industry, according to a report from ABC News.

Thanks to the filing this week of The Atlantic Club Casino Hotel, half of the 12 casinos in Atlantic City, New Jersey, have now filed for bankruptcy in the past six years, according to local sources.

Atlantic Club Casino Files for Bankruptcy

According to reports, Atlantic Club, which was formerly known as the Atlantic City Hilton, filed for Chapter 11 bankruptcy, which will allow it to stay in business as it goes through the bankruptcy process.

The casino’s new strategy of offering discount gambling, food, and entertainment to patrons with mid-level incomes has reportedly been working, but not fast enough, according to Michael Frawley, the casino’s chief operating officer.

Remarkably, roughly 70 percent of the games in the casino are penny slot machines, which offer relatively low rewards for gamblers, but are as cheap as possible.

According to Frawley, the company believes in this strategy, which it committed to 18 months ago. “Our creative branding campaign and the tremendous efforts of our employees have resulted in property growth within a continually challenged market.

Unfortunately, the market has taken longer to rebound than we had hoped,” said Frawley. But not everyone agrees with Frawley’s assessment.

In a petition filed with the bankruptcy court, Eric Matejevich, a leader of the casino’s parent company, said the company “does not have sufficient cash resources or committed financing to operate The Atlantic Club and service ordinary course obligations for an extended time period.”

Another Atlantic City Casino Seeks Bankruptcy Help

So the fate of the casino seems to rest on shaky ground, although casino promoters have been heartened by the potential sale of Atlantic Club to a bidder who would purchase the casino out of bankruptcy court.

Interestingly, the PokerStars website offered $15 million for the casino earlier this year, but the deal fell through. Sources do not expect the casino to receive such a large offer in bankruptcy court, and also speculate that the eventual closing price will be the lowest ever paid for a casino in Atlantic City.

 Of course, the casino’s low value is no mystery. During the first nine months of 2013, the Atlantic Club reported a $7.3 million operating loss, which is a significant burden for a company with 1,660 employees. Fortunately, though, the company has not planned to fire any employees yet, according to Frawley.

More News

Several States Consider Passing Stronger Laws Against Youth Bullying

Published on 11/22/2013

By John Clark As bullying becomes increasingly dangerous for young people in the United States,... Read more

Huffing Case Triggers Review of DUI Laws in Illinois Courtroom

Published on 11/15/2013

By John Clark An Illinois DUI case involving a defendant who inhaled a computer cleaning produc... Read more

Supreme Court May Soon Rule on Legality of Warrantless Surveillance

Published on 11/01/2013

By John Clark The Supreme Court may soon rule on the legality of warrantless government surveil... Read more

Court Ruling Protects Surviving Spouses With Reverse Mortgages

Published on 10/25/2013

By John Clark A ruling last week in the United States District Court for the District of Columb... Read more

Drunk Driver Pleads Guilty to Crash that Killed Police Officer

Published on 10/17/2013

By John Clark A drunk driver in Pennsylvania pleaded guilty this week to causing a ... Read more

New California Immigration Law Limits Detentions to Serious Crimes

Published on 10/10/2013

By John Clark In a move that stirred a national controversy, the Los Angeles Police Department ... Read more

California Doctor Sued for Playing Prank on Unconscious Patient

Published on 10/03/2013

By John Clark A California doctor is facing a ... Read more

New York Task Force Aims to Modernize Internet Criminal Laws

Published on 09/30/2013

By John Clark As technology evolves, criminal laws tend to lag several years behind. The recent... Read more

Florida Police Allegedly Beat Female Driver During DUI Arrest

Published on 09/18/2013

By John Clark Florida police allegedly beat a woman during a DUI arrest, and her ... Read more

Obama Administration Pledges to Reduce Mandatory Drug Crime Sentences

Published on 09/13/2013

By John Clark This week, the Obama Administration announced its intentions to reduce mandatory ... Read more