Tropicana in Atlantic City Slow to Sell

ATLANTIC CITY, New Jersey -- As Reported by the Las Vegas Sun: "While the recession is fueling price wars in Las Vegas, an Atlantic City casino has bigger problems due in large part to
Tropicana Atlantic City  the depressed economy.

The New Jersey Casino Control Commission pulled the Tropicana's gaming license in December 2007, saying its owners, who also own the Tropicana in Las Vegas, were unfit to run a casino. Over the past year, the state has attempted to sell the casino to the highest bidder, as required by law.

The process has been an instructive example of Murphy's law, affecting regulators, potential bidders and former owner Tropicana Entertainment, which has been fighting to regain control of the casino for more than a year.

This unprecedented regulatory decision, coupled with an unprecedented downturn, has created problems for trustee Gary Stein, the retired New Jersey Supreme Court justice who has been overseeing the sale.

Last summer, amid souring business and a Chapter 11 bankruptcy filing by Tropicana Entertainment, Stein rejected all bids for the property as too low and got the go-ahead to start over.

A couple of promising bids at $850 million and $950 million came in before the market meltdown. After the dust settled, Cordish Co., a Baltimore company that has developed malls and other tourist attractions, stuck in the game with a $700 million bid.

The process stalled when Tropicana Entertainment appealed the denial of its casino license. As expected, the New Jersey Supreme Court sided with the Casino Control Commission, citing regulatory violations and myriad management problems..."