December 19th, 2010 – by Glen Farmer
The smallest casino in Atlantic City, the Atlantic City Hilton Casino Resort is at risk of foreclosure, and is in default of its mortgage. In order to prevent lenders from seizing the gaming hall, the casino’s operators are going to attempt to prevent their casino from being seized.
The U.S. Bank National Association has already filed a motion asking for permission to foreclose. A hearing is now scheduled for Tuesday morning, being presided over by Superior Court Judge William C. Todd III.
If Judge Todd were to grant the motion, the bank would not be entitled to foreclose on the property immediately. An attorney for the Hilton’s owners is predicting that there will be a deep legal battle before the bank is allowed to take over the casino.
According to U.S. Bank, the Hilton ceased paying its mortgage in July 2009. As of September, the Hilton missed over $39 million dollars in interest payments on the mortgage.
The Hilton has been working to negotiate a debt restructuring, but no progress has not been made and talks are less than productive.
The Hilton will be requesting more time with which it may defend itself in the hearing.