Bankruptcy proceedings that include a public auction to find a new owner for the Atlantic Club Casino Hotel have been on the fast-track in New Jersey, but those proceedings have apparently been slowed by a lack of desire among potential buyers.
On the block for two days, a new owner for the struggling casino has failed to emerge, postponing any further court hearings until Monday. To further complicate matters, the local union representing casino employees has objected to the sale, asking the court to force any buyer to assume the constraints of the existing collective bargaining agreement.
The Atlantic Club owners, Colony Capital LLC, prefer a sale that excludes any liabilities, including the contract with the union, the Press of Atlantic City reported. Whether or not the owners get their wish will likely be decided by a bankruptcy judge.
As many will recall, PokerStars had brokered an agreement to acquire the casino for $15 million roughly one year ago. The deal fell through several months later when the Atlantic Club utilized a contractual clause that allowed the sale to be nullified based on a casino licensing stipulation.
The belief was that the Atlantic Club could possibly be sold for a larger price following the enactment of online gambling legislation in the state of New Jersey last February. But it appears that the Atlantic Club may not have played their cards correctly considering that the result of voiding the agreement with PokerStars led to a bankruptcy filing and the inability to secure a new buyer.
“God only knows what’s going to happen,” said Local 54 union president Bob McDevitt.