In New Jersey, the state gaming regulator is reportedly scheduled to meet later today in order to decide whether it should approve an interim deal that would finally result in a private equity fund taking over control of the fighting Ocean Resort Casino.
Hedge fund takeover:
Based on a Tuesday report from The Press of Atlantic City newspaper, the New Jersey Casino Control Commission is to look at an arrangement first made public last week that would visit New York City-headquartered Luxor Capital Group raise its holding in an entity known as AC Ocean Walk from 34% to 83%.
The newspaper detailed that AC Ocean Walk, which is currently majority-owned by Colorado-based real estate developer, Bruce Deifik, paid $229 million per year ago in order to purchase the closed Revel Casino Hotel before re-opening the iconic Atlantic City venue at late-June as Ocean Resort Casino. It explained that this trade was completed utilizing a bridge loan from JP Morgan Chase and Company worth $110 million combined with $122.5 million in financing from Luxor Capital Group.
But , the Boardwalk property has then been not able to capture a substantial share of Atlantic City’s nine-casino marketplace with Deifik now excited to stand apart despite having paid off the debt with JP Morgan Chase and Company at June via a second loan of $175 million.
If the New Jersey Casino Control Commission consent to the suggested agreement, the newspaper reported that the former Chief Operating Officer for its now-shuttered Atlantic Club Casino Hotel, Eric Matejevich, would be designated as the primary trustee for Ocean Resort Casino. This seasoned casino would then hold all of the venue’s interests until Luxor Capital Group was granted interim authorization by means of a process that could take up to 120 days.
In exchange for being awarded chief ownership of the 20-acre centre, Luxor Capital Group has pledged to immediately pay down the principal balance owed to JP Morgan Chase and Company by some $50 million. The company purportedly explained that it moreover wishes to deliver a buffet service to Ocean Resort and complete building on twelve uncompleted floors in order to add an additional 500 chambers to the property’s existing 1,399.