JP Morgan is suing in U.S. District Court to force the Atlantic City Hilton into receivership as a precursor to selling the financially troubled casino.
Receivership is being sought by U.S. Bank, the trustee for the Hilton's mortgage holder, J.P. Morgan Chase Commercial Mortgage Securities Corp., according to court papers cited by The Press of Atlantic City. If granted by the court, a receiver would take control of the casino on behalf of the lender and collect the money from its operations while a search is conducted for a buyer.
Hilton executives and owner Colony Capital declined to comment on the move, according to The Press.
The seaside resort’s smallest casino has failed to make payments on its mortgage since July 2009, according to court filings.
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