New Bids Sought for Tropicana Casino
The judge responsible for overseeing the sale of the Tropicana Hotel and Casino in Atlantic City is requesting an extension of several months to put together a deal. In his position as trustee, retired New Jersey Supreme Court Justice Gary Stein said that, because of changes in circumstances, the process would be best served by starting over in soliciting bids.
Stein emphasized that the cloudy picture of the casino's future has cleared considerably, and that the business might now command a much better price than was reasonable to expect a few months ago.
The seeking of bankruptcy protection by the previous owners has clarified any demands they might have had against the hotel. The credit crunch appears to be easing somewhat, allowing investors more access to monies to remodel and refurbish, as well as finance a purchase. Management currently handling the casino's day-to-day operations have improved conditions drastically, and performance is increasing.
Stein wrote the New Jersey Casino Control Commission that "the best approach is to reject all outstanding bids and to re-start the sale process."
Bids have already been submitted from several suitors: investor Joseph Palladino leads a group offering $950 million; Colony Capital, which owns Resorts and the Hilton Casino Resort in the same town, offered $850 million; and the Cordish Company has an unspecified bid on the table.
The sale of Trump Marina indicates investors see new potential in the previously troubled Atlantic City market. Stein's request would seem to be the only move he could make that honors his obligation as trustee.
