Tropicana joins Revel casino in bankruptcy

To say that things are not going according to the plan for Atlantic City casinos would be the understatement of the week. These formerly profitable gambling organizations are struggling these days and many of them are heading to bankruptcy. Tropicana and Revel are two such examples, of casinos that are going to close their doors shortly and leave many workers unemployed.

jacpot–finance.html has a compelling article regarding this issue and it looks like there is no hope for the two casinos. They’ve been trying to sort things out throughout the summer, but despite their best efforts, they are bound to fail miserably. As a result, the auction announced in July will take place as scheduled, with Brookfield Asset Management being the most likely company to purchase the assets.

The Canadian firm is not overly optimistic about the chances to turn these ventures around and that’s why they are not willing to spend a lot of money. On the bright side, they already run some lucrative businesses with a similar profile all over the world, so they have the know-how and resources to salvage something. It is not certain how much they will invest here, but the rumors suggest an amount of $100 million, which would be in line with the expectations for Revel.

The creditors are desperately trying to make sure that they will get what is rightfully theirs, but the problem is that they compete with each other. The debt incurred by the casino is significant while its assets dwindling, and that’s why many try to block the auction, until they recuperated as much money as possible. The current owners are desperately trying to keep the business alive before the end of November, but they require state aid just to keep up with the mounting expenses.

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