Atlantic City's Hilton casino defaults on mortgage

Aug 22, 2009 12:48 AM
Staff & Wire Reports |

Another Atlantic City casino has defaulted on its mortgage.

The Hilton Casino Resort disclosed in a financial statement filed with the New Jersey Casino Control Commission that it failed to make its monthly loan payment on July 9 due to the "severe impact of the current economic conditions."

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The casino says it's in negotiations with its lender to revise the terms of the mortgage agreement. As of June 30, its outstanding debt under the loan was $348.2 million, plus $868,000 in accrued interest, according to the financial statement.

Nicholas L. Ribis, the Hilton's chief executive, told The Press of Atlantic City that the casino would continue normal operations.

Daniel Heneghan, a Casino Control Commission spokesman, says the agency has been in contact with the Hilton but no regulatory action is anticipated at this time.

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