Atlantic City Has $12.8M Debt Due Tuesday; Lenders Wary

Just how wary lenders are of Atlantic City’s credit is evident in their recent demands as the city tries to refinance $12.8 million in debt due Tuesday.

Three lenders expressed interest in making the loan, but one wanted to charge 12 percent interest. Another was willing to lend at a lower rate but wanted a state guarantee, which the state rejected, Mayor Don Guardian said Saturday.

Talks continued with a third prospective lender, and a decision is expected Monday, Guardian said, adding: “We are prepared to make the payment regardless.”

The financial turmoil in Atlantic City, half of whose gambling revenue has disappeared since 2006, has intensified in the last year, as four of 12 casinos have closed, and 8,000 people have lost their jobs.

Read more at http://www.philly.com/philly/news/new_jersey/20150202_Atlantic_City_must_refi__12_8M_debt_due_Tuesday__lenders_are_wary.html#ko1yGKWcfBpViIB0.99

Casino Closings Wipe $2 Billion From Atlantic City Property-Tax Values

English: Picture of the Tropicana from the Boardwalk. (Photo credit: Wikipedia)

The closure of three Atlantic City casinos by mid-September will wipe $2 billion from the city’s property-tax values next year, exacerbating the already cash-strapped city’s financial plight, Mayor Don Guardian warned Tuesday.

By 2017, Guardian said on a conference call to discuss Atlantic City’s way forward as a tourism center following the rout of its casino industry, property values are expected to have fallen to as little as $7.5 billion from $20 billion five years ago.

In the short term, Guardian said the New Jersey Department of Community Affairs has made money “available for some bridge loans to make sure that the city continues functioning with this year’s budget because of any concern that we might have that a casino’s closing, going bankrupt might hold off payments.”

Read more at http://www.philly.com/philly/business/20140827_Casino_closings_wipe__2B_from_Atlantic_City_property-tax_values.html#9bAf73M2kyMlu0jB.99

Atlantic City’s Aging Casinos, Storm Aftermath And A Glut Of Gambling Capacity Spell Trouble

English: Picture of the Tropicana from the Boardwalk. (Photo credit: Wikipedia)

ATLANTIC CITY — Can this casino resort be saved?

Over Memorial Day weekend, it was easy to see all is not well here.  Eight of the 12 casinos predate the mid-1980s — carpets are grungy, paint is chipping off the walls, and far fewer employees are working the gaming floors.

As the sun broke through after a blustery Friday and Saturday, the Sunday crowds picked up on the Boardwalk. By midafternoon, it teemed with strollers and patrons at the outdoor restaurants.

But parking was available at several casino garages, a telltale sign it was not the hoped-for blockbuster weekend.  Business volume varied among properties.

At the newer Borgata, for example, there was a waiting list in the poker room and a steady stream of traffic throughout the casino.  At the barely year-old Revel, which just emerged from bankruptcy and opened new smoking lounges Friday, the sixth-floor casino parking level was filled with cars for the first time.  At dowdy Trump Plaza, meanwhile, an older generation half-filled the intimate gaming floor, and people in their 20s and 30s packed its outdoor beach bar.

Read more: http://www.post-gazette.com/stories/business/news/atlantic-citys-aging-casinos-storm-aftermath-and-a-glut-of-gambling-capacity-spell-trouble-689842/#ixzz2UsvznxAo