Commission Tosses Tropicana Casino Bids, Starts Over
The New Jersey State Casino Commission decided today to honor the request of the Trustee overseeing the sale of the Tropicana and toss out all existing bids and restart the process.
Retired state Supreme Court Justice Gary Stein had made the appeal due to what he perceived as bidding substantially below value. Between lack of available financing as the credit market tightened ever further and the questions persisting over claims by previous owner Columbia Sussex, Stein felt it had not been possible to receive a bid reflecting the casino's true value.
Now that Tropicana Entertainment, the arm of Columbia Sussex which owned the Atlantic City casino, has declared bankruptcy, purchasers can be assured of a clearer path to the title of the resort, without lingering implications.
Improved conditions at the hotel, and a positive revenue response to the day-to-day operations conducted by the team under Stein operating the casino, have also led the judge to believe higher bids might be forthcoming.
The Commission gave Stein a 120-day extension, with an October 16th deadline.
No information was released on the number of bidders, or the amounts bid in the initial process.
Commission Chairman Linda Kassekert did assure potential buyers that a filing under Chapter 363 of the federal bankruptcy code would guarantee free and clear title, with a short period of time before the closing of the sale.
