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Atlantic Club Casino Hotel to Close Next Month

Atlantic Club Casino Hotel to Close Next Month

Judge Gloria Burns has approved the sale of the Atlantic Club Casino Hotel to Tropicana Entertainment and Caesars Entertainment for $23.4 million. After the auction there was a chance that last minute union objections could prevent the sale going through and a rival bidder also complained that its bid was turned down.

Atlantic Club Casino Hotel to Close Next Month

Tropicana Entertainment and Caesars Entertainment have purchased the casino at auction and intend to close it next month.

Sobe Holdings put in a bid of $24 million; however, it was rejected as it was considered higher risk than the one from the Tropicana and Caesars. Sobe’s lawyers immediately objected that Caesars has a huge debt, around $22.1 billion, which should prevent it buying the casino.

However, the judge rejected their arguments saying “at this point, the horse is out of that barn.” She said that the bid could only be contested with arguments about fraud or collusion.

She also rejected the objections from Local 54 of the Unite-HERE union.

Any worker that loses their job because of the sale will receive a $1500 severance package and they will also keep any pension contributions made to date.

Caesars will be closing the hotel and casino on January 13th and at present there are no plans to reopen it.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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