Papers filed with gaming regulators show that the Hilton Casino Resort in Atlantic City did not make its mortgage payment in July. Casino operators told the brand new Jersey Casino Control Commission that it's trying 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 present economic conditions" ended in the corporate being unable to make its scheduled payment.
The Hilton becomes just the newest Atlantic City casino to stand a mix of huge debt payments and drastically declining earnings. Trump Entertainment already took its three casinos into chapter 11 earlier this year, and Resorts Atlantic City have been in negotiations to show 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 flee from financial maelstroms.
Regulators said no disciplinary action is anticipated, although the commission will closely watch the placement for further developments.
Atlantic City casinos was hit by a mix of accelerating competition and recessionary effects leaving revenues plummeting by double-digit percentages on a monthly basis.
Published on August 24, 2009 by PrestonLewis
Read More... [Source: Atlantic City Casino News]
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