Caesars Entertainment agrees to buy Atlantic Club's non-gaming assets in bankruptcy auction for $15M
Caesars Entertainment Corporation said it had agreed on the acquisition of the non-gaming assets of the Atlantic Club in a bankruptcy auction, a statement from the company said. The acquisition will be done by Caesars Entertainment Operating Company Inc, its subsidiary. The deal, which is still subject to the approval of the bankruptcy court, is worth $15 million, according to an Associated Press report.
Another buyer is acquiring the gaming assets of Atlantic Club. The club's current owner has said that it intends to close the facility on January 13 next year, the statement said. Caesars said it plans to complete the acquisition of the assets, which includes the real property after the closure. Caesars said it has no plans of resurrecting the facility's gaming or hotel operations. The statement said it is currently reviewing how the assets will be utilized, hinting that some of which may be used for its other properties in Atlantic City.
Associated Press reported that Tropicana Entertainment and Caesars Entertainment will be paying a combined amount of $23.4 million for Atlantic City. Citing bankruptcy filings, the report said Tropicana will be taking the 1,641 slot machines and 48 table games for a price tag of $8.4 million while Caesars will be paying $15 million for the property together with its more than 800 hotel rooms.
Meanwhile, Atlantic Club Chief Operating Officer Michael Frawley was quoted in the report as lauding the employees of the company which numbered 1,659 as of last month. He said, "First and foremost I would like to express my profound admiration and respect for the employees of this company," said Michael Frawley, chief operating officer of the Atlantic Club. "The events of the last few months have evoked an array of emotions, and through it all, the employees of the Atlantic Club have remained consummate professionals. It is because of these outstanding individuals that we were able to build considerable momentum over the last year. Unfortunately our pace was unsustainable in the extremely challenging Atlantic City gaming market."