Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Atlantic Club Casino Seeks Bankruptcy Protection
Author: Joel R. Glucksman
Date: November 21, 2013
Key Contacts
Back
The Atlantic Club Casino Hotel recently announced that it has filed for protection under Chapter 11 of the bankruptcy law, and that it plans to seek bids from potential buyers over the coming weeks.
The company, which filed bankruptcy proceedings in the U.S. Bankruptcy Court in Camden, N.J., hopes to be sold at a bankruptcy auction by mid-December. U.S. Bankruptcy Judge Gloria Burns has already approved a schedule under which the court would hear bids from prospective buyers by Nov. 18, and the casino will maintain normal operations during these proceedings, according to The Associated Press.
However, the casino did note that it does not currently have the cash flow to continue operations for a significant period of time, and it listed liabilities of between $10 million to $50 million. The Wall Street Journal reported that an unconfirmed amount of pension liabilities also tops the list of debts the casino is facing.
The Atlantic Club Casino Hotel is only one in a string of New Jersey casinos that are experiencing financial struggles and bankruptcy. The AP noted that roughly half of Atlantic City’s 12 casinos have sought bankruptcy protection over the last six years, despite many of them offering low-priced gambling and food options. Michael Frawley, the casino’s chief operating officer, said that the strategy of offering “value-centric” services was initially working, but has simply not produced financial results quickly enough.
“Unfortunately, the market has taken longer to rebound than we had hoped,” Frawley told the AP.
The failure of the market to rebound is also threatening the solvency of other Atlantic City casinos, with Revel Casino Hotel recently announcing its plans to seek “strategic alternatives” only six months after emerging from bankruptcy protection. Although the company has not yet made an announcement on the course of action it plans to take, analysts say that putting the company up for sale or returning to bankruptcy court are not far-fetched options.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.