Sep 29, 2008 3:35 pm US/Eastern
Buyer Willing To Invest $100M In Tropicana Upgrade
ATLANTIC CITY, N.J. (AP) ―
The Baltimore developer tapped as a potential buyer of the Tropicana Casino and Resort plans a $100 million face-lift of the troubled casino hotel after the deal goes through, the casino's state-appointed trustee said Monday.
The Cordish Company, which helped revitalize Baltimore's Inner harbor, and built The Walk, a popular shopping district in Atlantic City, said it is prepared to pump an additional $100 million into the Tropicana if it is successful in buying the place.
Trustee Gary Stein, a retired state Supreme Court justice, selected Cordish as a potential buyer in what would be a bankruptcy court auction of the Tropicana. Other interested bidders can still submit higher bids than Cordish's $700 million offer.
Stein released additional details about Cordish's offer on Monday, a few days after the former owners of the Tropicana raised questions about the proposed deal, particularly the value of securities Cordish was pledging in addition to cash.
Tropicana Entertainment LLC said it would go to court to block the proposed sale to Cordish, claiming the price was less than the property is truly worth. Tropicana Entertainment's parent company was stripped of its casino license last December after problems with cleanliness and service, and poor compliance with state gambling regulations.
Cordish made two offers for the property. The first involved $450 million in cash, along with $250 million in notes. The other was an all-cash offer of $575 million.
The Tropicana has remained open since its former owners lost their license last year. The license revocation forced the appointment of a trustee to oversee it while a new buyer is sought.
(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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