Columbia Sussex

A New Jersey appeals court slammed the former owner of Atlantic City's Tropicana casino yesterday for lacking "business ability" and flatly rejected its plea for a new operating license. The former owner, Columbia-Sussex Corp., said it might appeal to the New Jersey Supreme Court. But the ruling still marked the strongest endorsement yet of state regulators' rare decision in December to refuse to renew the license of Columbia-Sussex's local operator, Adamar of New Jersey Inc. The court sided with the five-member New Jersey Casino Control Commission on virtually every issue, including Adamar's financial unsuitability and unsanitary conditions at the casino because of mass layoffs ordered by Adamar.

William J. Yung III nearly passed on bidding for Aztar Corp., the former owner of the Tropicana casinos in Atlantic City and Las Vegas, when the company went on the block last spring. The president and chief executive officer of Columbia-Sussex Corp. said his marketing chief, Fred Buro, persuaded him to visit the gambling resort and to make an offer. "I hadn't been in Atlantic City in two or three years and hadn't seen how it had cleaned up," Yung said in a recent interview from his Fort Mitchell, Ky., office.

Tropicana Casino chief Fred Buro, who had overseen the layoffs of about 1,000 employees at his Atlantic City casino this year, confirmed yesterday that he was fired by Columbia-Sussex Corp. He said the termination occurred late Wednesday. Columbia-Sussex announced Buro's replacement yesterday. "I was asked to leave," Buro, the Tropicana's president and chief operating officer, said yesterday. He declined to go into the specifics, saying only that he was in the process of getting an attorney.

Add Philadelphia; Baton Rouge, La.; and Las Vegas to the list of places where Columbia-Sussex Corp. - which lost its license to operate the Tropicana Casino & Resort in Atlantic City last week - faces issues ranging from health-code violations to the possible loss of other gaming licenses. Its casino licenses in Indiana, Louisiana and Nevada appear in jeopardy, while labor demonstrations have been ongoing at its hotel in Baltimore and Tropicana casino in Las Vegas, where members of two unions have been working without a contract for months.

A major local bond trustee has sued the struggling Tropicana Casino & Resort for $960 million and blamed its chief executive officer for losing the casino's gaming license. Wilmington Trust Corp. accused William J. Yung III, chief executive of Columbia-Sussex Corp., which had owned the resort, of "recklessly and intentionally" allowing the casino to lose its license Dec. 12 after laying off about 900 Tropicana employees. The layoffs, the suit contends, led to a downward spiral of customer service at the Atlantic City casino and, subsequently, caused relicensing problems for Columbia-Sussex in other states where it owns casinos, including Indiana and Louisiana.

The company that formerly operated the Tropicana Casino & Resort in Atlantic City accused the New Jersey gambling regulatory commission yesterday of partiality in its decision last year to strip the owner of its casino license. The Tropicana has been on the block and under the control of a state-appointed trustee since the New Jersey Casino Control Commission ruled against renewing the license of the owner, Columbia-Sussex Corp., because of regulatory violations and unsanitary conditions at the Boardwalk casino.

The New Jersey Casino Control Commission yesterday refused to transfer assets of the Tropicana Resort & Casino back to its disqualified owner as a way to prevent the company's being pushed into bankruptcy. The Tropicana's state-appointed trustee, former New Jersey Supreme Court Justice Gary Stein, had asked for the transfer, saying a bankruptcy that could be triggered by a pending lawsuit would hurt his effort to sell the property. Stein is evaluating several bids for the casino.

ATLANTIC CITY - In a stunning development, the New Jersey Casino Control Commission today denied a license renewal for the troubled Tropicana Casino & Resort, saying that a trustee would operate the Boardwalk facility immediately until a buyer was found. It was only the second time a license renewal has been denied in the 29-year history of legalized gambling in Atlantic City. The Tropicana's attorney, Paul O'Gara, said the casino owner, Columbia-Sussex Corp., would appeal the decision, as soon as tomorrow morning, in state court.

ATLANTIC CITY - In a stunning development, the New Jersey Casino Control Commission yesterday denied a license renewal for the troubled Tropicana Casino & Resort, saying that a trustee would operate the Boardwalk facility immediately until a buyer was found. It was only the second time a license renewal has been denied in the 29-year history of legalized gambling in Atlantic City. The Tropicana's attorney, Paul O'Gara, said the casino owner, Columbia-Sussex Corp., would appeal the decision, as soon as this morning, in state court.

The Tropicana Casino & Resort's parent said yesterday that it might file for bankruptcy protection to prevent defaulting on its loan after the casino was denied a new license Wednesday. Tropicana Entertainment L.L.C. said its lenders could accelerate the payment schedule on its loans if the New Jersey Casino Control Commission's decision to deny the company a new license were not delayed or reversed by Wednesday. The company, which is an indirect subsidiary of Columbia-Sussex Corp.

Among the package of 14 hotels that Blackstone Group L.P. of New York has bought from Columbia Sussex Corp. in exchange for acquiring its debt is the Sheraton City Center at 17th and Race Streets. "I think change is good, in general, and I think the staff is excited about moving forward with new ownership," Paul Schwartz, general manager of the hotel for the last five years, said Thursday. But the scope of that change, and whether the hotel will remain a Sheraton or become another brand under the new owner, remains to be seen.

A New Jersey appeals court slammed the former owner of Atlantic City's Tropicana casino yesterday for lacking "business ability" and flatly rejected its plea for a new operating license. The former owner, Columbia-Sussex Corp., said it might appeal to the New Jersey Supreme Court. But the ruling still marked the strongest endorsement yet of state regulators' rare decision in December to refuse to renew the license of Columbia-Sussex's local operator, Adamar of New Jersey Inc. The court sided with the five-member New Jersey Casino Control Commission on virtually every issue, including Adamar's financial unsuitability and unsanitary conditions at the casino because of mass layoffs ordered by Adamar.

The New Jersey Casino Control Commission yesterday granted the overseer of the Tropicana Hotel & Casino another four months to sell the troubled property. The overseer, former state Supreme Court Justice Gary Stein, had requested the extension because he was concerned that bids had been too low. Stein was put in charge of the Tropicana after its former owner, Columbia-Sussex Corp., of Fort Mitchell, Ky., was stripped of its license in December. He now has 120 days to get a better deal - what he terms "fair-market value," without disclosing a specific number.

The New Jersey Casino Control Commission yesterday refused to transfer assets of the Tropicana Resort & Casino back to its disqualified owner as a way to prevent the company's being pushed into bankruptcy. The Tropicana's state-appointed trustee, former New Jersey Supreme Court Justice Gary Stein, had asked for the transfer, saying a bankruptcy that could be triggered by a pending lawsuit would hurt his effort to sell the property. Stein is evaluating several bids for the casino.

The company that formerly operated the Tropicana Casino & Resort in Atlantic City accused the New Jersey gambling regulatory commission yesterday of partiality in its decision last year to strip the owner of its casino license. The Tropicana has been on the block and under the control of a state-appointed trustee since the New Jersey Casino Control Commission ruled against renewing the license of the owner, Columbia-Sussex Corp., because of regulatory violations and unsanitary conditions at the Boardwalk casino.

A major local bond trustee has sued the struggling Tropicana Casino & Resort for $960 million and blamed its chief executive officer for losing the casino's gaming license. Wilmington Trust Corp. accused William J. Yung III, chief executive of Columbia-Sussex Corp., which had owned the resort, of "recklessly and intentionally" allowing the casino to lose its license Dec. 12 after laying off about 900 Tropicana employees. The layoffs, the suit contends, led to a downward spiral of customer service at the Atlantic City casino and, subsequently, caused relicensing problems for Columbia-Sussex in other states where it owns casinos, including Indiana and Louisiana.

Last week's ruling by the New Jersey Casino Control Commission to deny the Tropicana Casino owner a license renewal sent a clear message: Atlantic City isn't going back. It's steamrolling ahead amid an insatiable arms race in this seaside resort to build more hotel towers, tony shopping malls, and mega-casinos to ward off slots competition from Delaware, New York and Pennsylvania. A state-appointed trustee - former New Jersey Supreme Court Justice Gary Stein - has been in control of the casino since the commission voted Dec. 12 to deny owner Columbia-Sussex Corp.

Add Philadelphia; Baton Rouge, La.; and Las Vegas to the list of places where Columbia-Sussex Corp. - which lost its license to operate the Tropicana Casino & Resort in Atlantic City last week - faces issues ranging from health-code violations to the possible loss of other gaming licenses. Its casino licenses in Indiana, Louisiana and Nevada appear in jeopardy, while labor demonstrations have been ongoing at its hotel in Baltimore and Tropicana casino in Las Vegas, where members of two unions have been working without a contract for months.

The Tropicana Casino & Resort's parent said yesterday that it might file for bankruptcy protection to prevent defaulting on its loan after the casino was denied a new license Wednesday. Tropicana Entertainment L.L.C. said its lenders could accelerate the payment schedule on its loans if the New Jersey Casino Control Commission's decision to deny the company a new license were not delayed or reversed by Wednesday. The company, which is an indirect subsidiary of Columbia-Sussex Corp.

ATLANTIC CITY - In a stunning development, the New Jersey Casino Control Commission yesterday denied a license renewal for the troubled Tropicana Casino & Resort, saying that a trustee would operate the Boardwalk facility immediately until a buyer was found. It was only the second time a license renewal has been denied in the 29-year history of legalized gambling in Atlantic City. The Tropicana's attorney, Paul O'Gara, said the casino owner, Columbia-Sussex Corp., would appeal the decision, as soon as this morning, in state court.