New York City Consumers and Atlantic City Casinos are the Same When it Comes to Denying Debt Troubles
The Casino Industry in Atlantic City is crumbling, but there is still at least one casino thriving on the boardwalk while others are closing their doors for good. Why is the Borgata doing so well when Trump Plaza, the Revel, Showboat and Atlantic Club all filed bankruptcy or closed their doors last year? The Borgata has the same competition from out of state that is plaguing the other casinos yet it will succeed where the other casinos are failing.
When the Trump Plaza opened in 1984 it was considered one of the nicest buildings in the USA and was the center of the action in the gambling world. It’s been going downhill for at least the last decade, and in the last five years the property has fallen into such disrepair that the neon sign at times read “U laza,” the 24 hour restaurants were closing by 2PM, and even the air conditioning was shut off in a desperate attempt to cut costs. In all of 2014 the Trump Plaza had taken in only $37 million, the same amount the Borgata brings in every two weeks. It’s been on its way out for a while now, but the writing was on the wall last year when a deal to sell the Trump Plaza for the bargain clearance price of $20 million went south.
In retrospect, Trump Entertainment Resorts Inc. probably should have seen this coming sooner and done more to avoid the situation or protect themselves faster. Now it’s too late and they probably couldn’t pay someone to take the “U laza” off their hands. The interesting thing is that Donald Trump himself is only a 5% owner in the company, but he knew to cut his ties to Atlantic City long ago nevertheless. Earlier this year he even tried to sue to have his name removed from the buildings. No stranger to bankruptcy protection himself, Donald Trump likely saw the inevitable end for Trump Plaza long ago and got out at the right time.
Now, we can’t expect everyone to be as savvy as Donald Trump, but it is still remarkable to see a casino corporation exhibit the same behavior as individuals in financial trouble. In our New York City Bankruptcy Offices it’s common to see clients delay, deny, hesitate or ignore their financial troubles. Like the failing casinos, consumers will go to desperate lengths to try and stay afloat rather than declare bankruptcy. People will often lose their entire nest egg, retirement accounts valuable possessions and even their homes in a desperate attempt to pay down their debt. Casinos and consumers alike usually wait too long to get the protection they need.
Meanwhile, the Borgata is going strong. Its restaurants are open and busy, its players are happy and comfortably air conditioned, and the Borgata will stand to receive a good share of the future revenue that had been going to the casinos that closed. It would be nice if we could all be like rich, successful and glamourous like the Borgata, but that is not realistic either. If people were like casinos most would probably fall somewhere between the super successful Borgata and the abysmally lost Trump Plaza. If you find you are starting to turn off the air conditioning and neon lights of your own life then it’s probably time to get some help. Not everyone in debt should file bankruptcy, but it can be the best way out for casinos and regular people too. If you live in New York City contact the Law Offices of William Waldner online or at 212.344.2882. We mainly practice bankruptcy law and know how to protect your valuable assets and bank accounts in bankruptcy.
**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.