New Jersey Assemblyman Chris Brown—who represents Atlantic City—is worried that Caesars Entertainment plans to close its two Boardwalk casinos through bankruptcy and wants state regulators to hold hearings on the company’s plans.
Caesars’ main operating unit is in bankruptcy and Brown is worried the company plans to shut Bally’s Atlantic City or Caesars Atlantic City.
In a letter to the state Division of Gaming Enforcement, Brown pointed to allegations that the company improperly transferred assets among various units to protect some properties—such as Harrah’s Resort in Atlantic City—from creditors while less-desirable ones—including the two Boardwalk casinos– remain in the bankrupt Caesars Entertainment Operating Co.
“Caesars has the right to manage its finances; however, if the allegations are true, Caesars may have set up two of its Atlantic City properties for closure through the bankruptcy process,” the letter says. “A hearing would shed some light on Caesars’s transactions and debt restructuring plan so we can evaluate its financial stability to properly operate their casinos here in Atlantic City,” it says.
The DGE is conducting a periodic reexamination of the casino licenses issued to Caesars’ three Atlantic City resorts, according to the Associated Press.
