Like all of AC that is going under, with NJ getting ready to step in?
Trump left AC, remember?
“Trump left AC, remember?”
Oh yeah, how could I forget:
Lawsuit claims fraud in failed Trump Marina casino sale
ATLANTIC CITY - Leaky windows. Broken air-conditioning. Missing kitchen equipment. A weather-beaten building.
Things supposedly were so bad that pans and plants were placed underneath the windows to catch the dripping water.
What sounds like a fleabag motel actually is the Trump Marina Hotel Casino, according to a company that is engaged in a legal battle with Trump Entertainment Resorts Inc. after a $270 million deal for the gaming hall fell apart.
Coastal Marina LLC, a New York gaming company that tried to buy Trump Marina, claims that Trump Entertainment deliberately allowed the property to fall into disrepair and diverted customers to its two other casinos after it appeared the sale would go through last year.
However, the deal collapsed in early June, prompting Coastal and Trump Entertainment to blame each other for failing to live up to the terms. In the latest salvo, Coastal filed a lawsuit in U.S. Bankruptcy Court late Tuesday accusing Trump of fraud and breach of contract.
Trump Entertainment denied the allegations, claiming they were a last-ditch effort by Coastal to try to recover a $17 million down payment on the casino.
“This is nothing more than what I think is buyer’s remorse,” said Mark Juliano, Trump Entertainment chief executive officer. “All of the accusations are totally untrue.”
Coastal had planned to rebrand Trump Marina into a Margaritaville-themed casino in partnership with singer-songwriter Jimmy Buffett. Originally, Coastal agreed to buy the casino for $316 million, but Trump later lowered the price to $270 million in an attempt to salvage the deal.
According to Coastal’s suit, Trump Entertainment stripped the casino of its valuable customers and failed to make promised repairs that were crucial in securing the financing for the sale. Coastal estimates the casino needs $50 million in upgrades.
Among the alleged problems, Trump Marina suffers from weather damage to the casino’s Crystal Tower. It also has missing kitchen equipment and broken air-conditioning units that have left guest rooms hot and unrentable. Further, it is plagued by a leaky roof, windows and skylights, the suit claims.
“Indeed, rather than repair the roof and skylights, Trump Marina resorted to using drip pans and placing plants underneath the leaks,” the suit says.
Juliano denied the allegations, saying the casino has always been kept up to high standards. Trump Entertainment also issued a statement saying that it consistently met or exceeded its commitments to Coastal Marina, including capital expenditures and money for casino promotions to draw customers to Trump Marina.
“The idea that we diverted customers is totally untrue,” Juliano said. “We did the opposite by directing customers back to the Marina in order to maintain it.”
The suit demands repayment of $17 million in deposits paid by Coastal as well as other damages stemming from Trump Entertainment’s alleged misconduct. Juliano said the $17 million down payment is nonfundable.
The suit comes just days before Trump Entertainment is expected to decide whether to accept a bankruptcy buyout from former chairman Donald Trump or its corporate bondholders. A bankruptcy judge has set Monday as the deadline for the company to make its choice. Juliano denied that Coastal’s suit will complicate the buyout.
“This is a completely separate issue,” he said.
Trump Marina’s sale was once seen as crucial for the company’s financial restructuring under Chapter 11 bankruptcy protection. Proceeds from the deal were supposed to be used to help ease Trump Entertainment’s suffocating $1.7 billion debt.
http://www.pressofatlanticcity.com/business/article_79ea813e-706a-55f0-a599-5b8315a2dc91.html