Hilton Casino in Atlantic City Latest Gambling Venue in Default
Papers filed with gaming regulators show that the Hilton Casino Resort in Atlantic City failed to make its mortgage payment in July. Casino operators told the New Jersey Casino Control Commission that it is attempting to negotiate new terms with its mortgage lenders.
The mortgage loan amounts to $349 million. Hilton executives told the Jersey regulators that the "severe impact of the current economic conditions" led to the company being unable to make its scheduled payment.
The Hilton becomes just the latest Atlantic City casino to face a combination of massive debt payments and drastically declining earnings. Trump Entertainment already took its three casinos into bankruptcy earlier this year, and Resorts Atlantic City has been in negotiations to turn its casino over to lenders in exchange for mortgage debt.
CEO Nicholas Ribis stated that casino operations would continue uninterrupted, as has occurred at other troubled casinos while management attempts to escape from financial maelstroms.
Regulators said no disciplinary action is anticipated, although the commission will closely watch the situation for further developments.
Atlantic City casinos have been hit by a combination of increasing competition and recessionary effects leaving revenues plummeting by double-digit percentages on a monthly basis.
