Hand it over, say A.C. creditors

Aug 17, 2009 7:59 PM
by Ray Poirier |

The Resorts Hotel/Casino in Atlantic City shone briefly when it became the first gambling house to open on the Boardwalk. But as soon as competition developed, it became a dog.

It was a dog for the late Merv Griffin, who outbid rival Donald Trump in the early 90’s to acquire the property from its original owner. It was a dog for South African casino mogul Sol Kerzner, who was unable to take it out of its doldrums.

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And, it was a dog for Colony Capital LLC, and partner, long-time gaming executive and former Trump associate, Nick Ribis. In fact, it was so bad that the operator was unable to make monthly payments on a $10 million loan backed by a $360 million mortgage from Column Financial Inc., a lending arm of banker Credit Suisse.

So they have agreed to hand over ownership of the property to the unlicensed lenders with the provision that Ribis, who is licensed, will continue to manage the casino.

The New Jersey Casino Control Commission will consider the proposal at its meeting later this month.

Question? Comment? E-mail me at: Ray Poirier