Casino Disrepair Causes Potential Purchaser to Sue Trump Casinos

Potential developers of a Margaritaville casino sued Trump Entertainment for devaluing the Trump Marina Casino, saying the owners devalued the property after the deal was reached but before closing could occur.

After a deal to sell its Trump Marina Hotel Casino in Atlantic City fell through, Trump Entertainment now faces a lawsuit by the prospective buyer, Coastal Marina. Coastal alleges Trump management failed to maintain the value of the property once the agreement to sell was reached, leading to a decline in the value of the casino.

Coastal was forced to file the claim in US Bankruptcy Court, as Trump Entertainment declared bankruptcy earlier this year. Coastal says Trump sent customers to the other Trump properties, while allowing $50 million in repairs go attended.

Coastal, run by Donald Trump protege Richard Fields, had planned to convert the property to a theme associated with Jimmy Buffett's Margaritaville brand. It agreed to purchase the property for $316 million in May of 2008. Amendments were made after the recession began lowering the price to $270 million.

But, in levying charges of fraud against Trump Entertainment, Coastal claims Trump executives conspired to strip the casino of its intangible assets before completing the sale. By sending its best employees and patrons to other Trump properties, Trump damaged the casino's reputation, and the untended physical problems exacerbated the situation.

Trump CEO Mark Juliano commented on the suit, saying the charges were false and Coastal just had a case of buyer's remorse. But Coastal says lenders would not use the property to secure a loan based on its condition, and cited such glaring needs as leaky windows and ceilings which were addressed by placing potted plants by drips.