Resorts' predicament is yet another example of how the economy and regional slots competition have battered the nation's No. 2 gambling mecca - and how the smaller and older casinos that lack the scale and databases of the bigger gambling halls here are struggling mightily.
Resorts - Atlantic City's first casino, which opened May 26, 1978 - is down 22 percent year-to-date in total gambling revenue from the same period a year ago. It was the fourth-highest decline. The Atlantic City Hilton, the city's smallest gambling floor by square footage, reported a 25 percent decline; Trump Plaza Hotel Casino, which debuted in May 1984, is 23.7 percent down from a year ago. Trump Marina, which opened June 19, 1985, had a 22.1 percent drop.
Total gambling revenue in Atlantic City was down nearly 14 percent in June, and almost 13 percent in July, during what is traditionally its peak season.
Resorts has been trying to fend off a takeover by its lead lender - Column Financial Inc., a wholly owned subsidiary of Credit Suisse - all year.
In its request Jan. 22 to take over the casino, Column said it wanted to establish a bank account, overseen by loan agent Trimont Real Estate Services Inc., as a way to monitor the casino's expenditures and deposits.
In March, state regulators ruled that Column could begin foreclosure proceedings, but the casino's owner - Resorts International Holdings L.L.C., which also owns the Atlantic City Hilton - would maintain control over its bank accounts.
After the ruling, Nick Ribis, vice chairman and chief executive officer of Resorts International, said he was determined to avoid filing for bankruptcy and, instead, to seek a deal with the lenders.
