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Atlantic City Casino Hammers Out Deal With Lenders

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Nov 19, 2009 4:44 pm US/Central

Atlantic City Casino Hammers Out Deal With Lenders

ATLANTIC CITY, N.J. (AP) ―

Click to enlarge 1 of 1: A man runs by the Tropicana Casino Resort on April 29, 2009, in Atlantic City, New Jersey.
Spencer Platt

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America's first casino to open outside Nevada got permission Thursday to hand itself over to its lenders because it can't pay the mortgage.

Resorts Atlantic City hammered out a deal with its lenders to let them own the casino in return for canceling nearly $381 million in debt.

The lenders, including Wells Fargo, have formed a new corporation, RAC Atlantic City Holdings LLC. It was approved by the state Casino Control Commission as the casino's new owner, with a one-year license.

The deal is to close in 10 days. It's the first of its kind in Atlantic City's 31-year history of casino gambling.

On Wednesday, Resorts revealed it owes nearly $337 million more than it has right now.