ACH To Stay Open
For the last couple of years, rumors of ACH’s (formerly the Atlantic City Hilton) imminent closing have been as abundant as cheesesteaks on the Boardwalk. But now it looks like the casino has not only survived, it’s going to get an infusion of cash.
The Associated Press reports that the property’s owner have reached a deal to avoid foreclosure on the struggling gambling hall, and agreed to pump $15 million into it to keep it afloat.
The deal will let lenders foreclose on two casinos in Mississippi that are owned by ACH’s parent company, the Los Angeles hedge fund Colony Capital. The lenders will assume ownership of Bally’s Tunica and Resorts Tunica and will wipe out the mortgage debt for ACH.
The deal also calls for an additional infusion of $9.3 million in cash for the casino when lenders release insurance proceeds stemming from an August 2009 flooding claim at the Atlantic City casino.
All told, the deal reached Wednesday will pump at least $24.3 million in new funds into the casino, which has been on life support for more than two years amid a fruitless effort to find a buyer, The AP reports.
Also from the AP report:
According to financial documents filed with the state at the end of June, ACH had owed at least $414.6 million to its lenders, including U.S. Bank National Association and J.P. Morgan Chase Bank.
Colony borrowed money in October 2006 for its two Mississippi casinos, secured in part by what was then called the Atlantic City Hilton. The lenders will foreclose and become the new owners of those two Mississippi casinos.
The deal is expected to close on or before Nov. 30.
The owners are asking the state Casino Control Commission to declare that the casino now has the financial stability, integrity and resources to keep operating for the next year. That request will be heard at the commission’s Nov. 16 meeting.
The casino also is seeking the refund of some of its state-mandated payments to the Casino Reinvestment Development Authority, but an amount was not specified.
You can read the full report here.