Colony Capital, the owners of ACH, the former Atlantic City Hilton, has avoided foreclosure on the property by allowing lenders to foreclose on two of its Tunica properties and assume ownership. The move frees up $24.3 million in cash for Colony thereby allowing ACH to pay off its $15 million mortgage debt, keep the property open, its 2,000 employees on the payroll, and letting management proceed with its turnaround plan with $9.3 million in cash on hand.
"It's a vote of confidence for our customers that we will still be around in the market," Michael Frawley, ACH's chief operating office, told the
Press of Atlantic City. "I think we have a great plan moving forward. We're happy to tell our employees that they remain secure. We're looking forward to being part of Atlantic City."
Frawley also said the company will soon announce additional plans, including the casino's possible rebranding and another name change. The property lost the right to the Hilton name this summer when its franchising agreement expired. Subsequent attempts to sell the property were unsuccessful.
As part of the deal, the Tunica properties, Bally’s Tunica and Resorts Tunica, will remain open and keep their names.
ACH avoids foreclosure with Tunica swap
November 4, 2011