rustee Gary Stein said the Cordish Company has offered to buy the gambling hall, which includes New Jersey’s largest hotel at 2,129 rooms, for us$ 700 million in cash and stock.
The bid by Cordish will be submitted to a bank court judge in Delaware, which will conduct an auction where other companies can submit higher bids if they wish to buy the Tropicana. No time frame was offered for the auction to be completed, although bankruptcy advisers said they typically last between two to three months after the paperwork has been filed.
Cordish, which developed The Walk, Atlantic City’s popular downtown shopping district between the convention center and the Boardwalk casinos, also had been a bidder for the Tropicana during an initial round of bids earlier this year. Those bids were scrapped when Stein determined they were all too low. He would not reveal how many bidders there were, or how high they went.
Stein declined to comment beyond a written statement that said Cordish was chosen based on its capabilities and track record in gambling properties, real estate development, and management. The company is also known for redeveloping parts of Baltimore’s popular Inner Harbor, and has done projects in Hollywood and Tampa, Charleston, Houston and Louisville.
The declining economy is believed to have lowered the asking price for the Tropicana, which was estimated earlier this year at us$ 1 billion.
The highest publicly known bid earlier this year was for us$ 950 million from a New York developer, Joseph Palladino. An us$ 850 million bid was made by Colony Capital LLC, which owns Resorts Atlantic City and the Atlantic City Hilton Casino Resort. It is possible another bidder could submit a higher offer for the Tropicana before Cordish’s bid is submitted to the bankruptcy court, officials said.
State regulators stripped the Tropicana’s former owners, affiliates of Kentucky-based Columbia Sussex Corp., of their casino license last December, necessitating a sale of the property.