Financial problems hit Resorts Atlantic City, Tropicana

ATLANTIC CITY -- The worsening economy continues to batter Atlantic City casinos, with Resorts Atlantic City missing a crucial loan payment that could jeopardize the future of Atlantic City's first casino and the Tropicana Casino and Resort laying off 50 supervisors.

Those casinos have been among the hardest hit of Atlantic City's 11 gambling houses, and both lack the resources to compete with market leaders as the fight for every gambling dollar intensifies.

Resorts' parent company, Colony RIH Holdings Inc., revealed in a filing this week with state casino regulators that it was unable to make its monthly interest payment to its lenders "due to the extreme impact of the current economic conditions."

The amount of the required payment was not specified.

The company said it is negotiating with the lender, Column Financial Inc., over a course of action. The two-year, $10 million loan is backed by a mortgage on Resorts, which opened in 1978.

According to Colony's filing, the entire $10 million loan could become payable at once if the company can't reach a deal with the lender. It was not clear whether the privately held company has, or can raise, the cash to pay off such a demand.

Company spokesman Owen Blicksilver declined comment.

Dan Heneghan, a spokesman for the state Casino Control Commission, said regulators are aware of the missed payment, have been monitoring the company's financial condition and have been "in regular contact with officers at Resorts about this."

The Tropicana said Friday it recently laid off 50 supervisors "due to the economic issues we are currently facing as a city and country," spokeswoman Diane Spiers said.