Bankrupt NJ casino has $17.7M assets, $16.8M debts
ATLANTIC CITY, N.J. (AP) — The Atlantic Club Casino Hotel, which hopes to sell itself at a bankruptcy court auction this month, has laid out its assets and liabilities for the court.
The casino formerly known as the Atlantic City Hilton listed assets, excluding real property, of $17.1 million and liabilities of $16.8 million.
The casino would not estimate the worth of its real property when asked by The Associated Press. It listed the value in the filing as "unknown."
A deal to sell the Atlantic Club to the parent company of the PokerStars website fell through this year, and the casino was unable to find a new buyer. The Rational Group was to pay $15 million for the casino, meaning the price to be paid at the bankruptcy court auction is likely to be below that, and would be by far the lowest price ever paid for an Atlantic City casino.
The filing of assets and liabilities was made Wednesday with the federal bankruptcy court in Camden.
The Atlantic Club has remained open since filing for Chapter 11 protection last month. The casino could be put up for auction Dec. 17, with the sale completed by March.
The city's southernmost casino, the Atlantic Club has struggled to compete with newer, larger casinos. Nearly two years ago, it adopted a "value pricing" strategy, targeting low-rollers and residents either put off by or unable to afford pricier casinos. The casino's CEO, Michael Frawley, said that strategy is working but not fast enough to help stave off Chapter 11 filing.
A statement of assets and liabilities usually accompanies the initial bankruptcy filing, but the casino got permission from the bankruptcy court to delay revealing them until this week.
The filing said the casino has about $2.4 million in accounts receivable.
The 660-page document lists assets and liabilities great and small; the casino said it owns 11 vehicles, ranging from a 1989 boom lift to a 2007 Kia truck. It has $618,973 worth of inventory, including food, beverages, tobacco, room supplies, linens, fuel oil and marketing gifts.
Creditors range from accounts worth hundreds of thousands of dollars to $25 owed to a Brooklyn man pressing a liability claim against the casino.
Slot machine manufacturers are owed hundreds of thousands of dollars, according to the listing, including Bally Gaming ($722,654) and IGT Corp. ($453,453). The casino owes the city of Atlantic City $2.25 million and Atlantic City Electric $435,897.
Also listed among unsecured creditors are numerous people pressing workers' compensation claims of unspecified amounts against the casino.
With the Atlantic Club's Chapter 11 filing, half of Atlantic City's 12 casinos have filed for bankruptcy over the past six years. The Atlantic Club joins Revel Casino Hotel as Atlantic City casinos that sought Chapter 11 protection this year. Revel emerged from bankruptcy court in May.
Wayne Parry can be reached at http://twitter.com/WayneParryAC