Everyone knows that the economy is struggling and that many businesses may have to close or take other measures to account for the revenue not being made. Recent reports have surfaced stating that Resorts Atlantic City is facing foreclosure after not making their loan payments over the past several months.

October was the last time that Resorts Atlantic City issued a loan payment and they are currently fighting off foreclosure stating that their lenders do not have a casino license and they cannot operate the casino or own it.

While the bank and Resorts are battling for the casino, Resorts Atlantic City is setting aside $15 million to cover their payroll, taxes and payouts to winning gamblers.

Column Financial, the lender of Resorts Atlantic City, has filed a request to foreclose on the property or the owners must surrender the title without having to foreclose to the Casino Control Commission who will consider the request tomorrow.

Resorts Atlantic City still is fighting back with the point that the bank does not have a casino license therefore they cannot legally take over the casino and hotel. It will be interesting to see what decision the Commission will take on this matter.


- 2009-02-17