Friday, October 24, 2008

Atlantic City Tropicana Casino's Ex-Owner Asks For Return Of Casino

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The former owners of the Tropicana Casino and Resort in Atlantic City filed papers yesterday asking New Jersey regulators to give them back the casino, which was stripped of them after the New Jersey Casino Control Commission voted not to renew their license. Since then, a trustee has been appointed to find a buyer.

Tropicana Entertainment, LLC says it has restructured its board of directors, removed the chief executive officer and overhauled the management team.

Tropicana Entertainment, once part of Columbia Sussex Corporation, filed for chapter 11 bankruptcy in May. Tropicana Entertainment's petition claims it is better able increase profits and secure a higher sales price for the property. The leading bidder is Baltimore-based Cordish Company, offering $700 million for the 14-acre casino and resort.

The Mohegan Tribe at one time publically expressed interest in bidding on the Tropicana property but only on the condition that Atlantic City did not permit new casinos to be built on the 150-acre former Bader municipal airport parcel. Since then the Tribe's interest in the Tropicana casino has waned and, last week, the Tribe said it would be interested in bidding on the former Bader municipal airport property.