Facing foreclosure, Atlantic City's oldest casino to be taken over by creditors

Nine months behind on payments on a $360 million mortgage and facing foreclosure, Atlantic City’s oldest casino, Resorts, has agreed to be taken over by its creditors.

Owner Colony Capital will lose possession of the property, according to a petition released by the N.J. Casino Control Commission and reported inThe Press of Atlantic City, but CEO Nicholas L. Ribis will stay on to run it under a management contract with the lenders, led by Column Financial, which won approval to begin foreclosure proceedings back in March.

The takeover is pending regulatory approval. The Presssaid the Casino Control Commission may schedule a special hearing next week to consider it.

“This would be the first time that a casino in Atlantic City would change hands in this fashion,” commission spokesman Daniel Heneghan said.