With No Buyers Emerging, Atlantic City Hilton Casino Resort Could Soon Close

August 12, 2011 – In The News
The Press of Atlantic City

After losing its Hilton name, the Atlantic City Hilton, or "ACH" as its recently been dubbed, has been seeking a buyer without any luck. Analysts predict the once glitzy resort will have to close its doors soon if a buyer doesn't come along.

Because of its remote location and need of rebranding, the casino has been a hard sell.

“It is expensive to give a property a name change,” said Michael Viscount. “You have to change every pen, every piece of paper, every website. The signage is an astronomical expense. If they don’t change it, they would have to put a cover over it.”

In addition to rebranding and location problems, the buyer would also have to takeover the Hilton's financial liabilities because it is being sold as a “stock sale,” which means the financial obligations will go with the casino hotel — including the labor contracts, unfunded pension liabilities, payments to vendors, lawsuits, and any unpaid real estate taxes.

“It has to do with successor liability for the buyer,” Viscount said. “If you’re doing a stock sale, then, after the transaction is done, the old entity still exists and the liabilities go with it. The reason the seller wants to do a stock sale is because he wants to make a clean break and move on and never have to think about it again.”

View entire article