The Ocean Resort Casino threatens that

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Lennart folder January 26, 2019

The reopening of a mega casino in summer 2018 was intended to boost Atlantic City economically and to bring the city back to the city. Instead, the luxurious Ocean Resort Casino is apparently over after six months before. Bad sales figures should be the reason. What is the current status of the $ 2.4 billion project?

The Ocean Resort Casino in Atlantic City (New Jersey/USA) was reopened with great financial commitment.

Great financial commitment

Bruce Deifik, Managing Director of the Investor Consortium AC Ocean Walk-Group, which stands behind the Ocean project, is a special man in many ways-especially in self-view. But above all, he is a financially strong investor who is the former Revel Casino Hotel in Atlantic City Bought at the beginning of 2018 And had renovated and renovated with great financial effort until the reopening in June 2018. Whopping Bruce Deifik invested $ 229 million in the project. however, money seems to play a subordinate role in the major investor. after all, he spared no costs and efforts in the hotel and casino complex. visitors from all over the world can accommodate and enjoy in the around 1,400 rooms and suites of the ocean, can feast and enjoy in the numerous restaurants, let themselves be sprinkled by the extensive offer of entertainment and show and of course test their luck in the gigantic casino area. over 2,000 machines and more than 100 gaming tables let the rubles roll. at least that’s how the entrepreneur’s original plan was. the ocean as the highest building in the city should help the gambling paradise of past days to make new splendor again and at the same time boost the regional economy. but after only six months of operation, reality seems to be completely different. the rumors have hardened that the investment of bruce deifik was a failure and that the numbers are in the negative area. Who is actually Bruce Deifik?: the 64-year-old bruce deifik has in the past decades in Las Vegas made a name as a restless entrepreneur shark. In addition to his work at Greenspun Corp. Media group based in Nevada is also known to the MMA-Liga Professional Fighters League, formerly World Series of Fighting. He also belongs to the Lucky Silver Casinos investor group, which includes the Golden Tiki, Silver Nugget as well as Lucky Club Casino and Hotel. According to his own statement, Bruce Deifik has released the first ten million US dollars for the Ocean project without ever seeing the facility on site, let alone being in Atlantic City.

Bad numbers are suspected of crisis

it is such a thing with estimates. if those responsible for the project were quoted shortly before the reopening, that the turnover of the gigantic hotel and casino complex in the first tax year according to estimates should be $ 384.6 million-new noticed-the first published winning figures of the total nine drew casinos in atlantic city for the third quarter of 2018, the first for the ocean project, a much more negative picture. the sales in the gambling sector have risen significantly on the american east coast through the mega complex. However, only a net profit of $ 1.4 million was effectively stuck, a comparatively low value that was even topped by the significantly smaller casinos of the city. So it seems that the original ideas of Ocean main shareholders Deifik and reality differ significantly. Especially when you consider that the purchase of the mega complex was only made possible by two bridging loans:

  • $ 122.5 million came from the Luxor Capital Group based in New York
  • The JPmorgan Chase Bank contributed $ 110 million by loan. Immediately before the reopening on June 4th, this loan was replaced by a new $ 175 million, strong loan from the JPMorgan Chase Bank, which was officially to the Deifik Family Partnership.

This most likely with a American limited partnership without fully comparing partnership runs exclusively on the two guarantors Nancy Deifik and Bruce Deifik. In plain language, this means that the difficult numbers also put the managing director Deifik directly under pressure. This condition is also crucial for a lawsuit submitted last year by Joseph Morrisey, the former managing director of the Ocean Resort Nachtklub HQ2.

Dispute goes to court

In the event of a dispute, it is about Morrissey’s allegation that he only fired him so that he does not come to the shares due to him according to the management contract and due to the financing support of the overall project. The application complains that Morrisseys lawful claims were not taken into account in the loan negotiations with the JPmorgan Chase Bank. The termination of Morrisse’s termination without notice was only started by Deifik from self -interest. Allegation of Joseph Morrisey’s lawyers: bruce deifik is currently looking for a new buyer for the ocean complex. that is why deifik try to acquire ownership shares on the ocean project from others so that nothing stands in the way of a holistic sale. morrissey requires a breach of the contract, defamation and other allegations of $ 25 million compensation and the judicial determination that his claims are preferred to those of the jp morgan chase bank. the morrissey case is not the only indication that the ocean project is poorly ordered. several construction companies that were involved in the reopening of the hotel and casino complex also raise claims to the ocean group led by deifik. while some complaints from the construction companies have already been rejected, however, lien a total amount in dispute of $ 1.1 million in the room.

Fixed big announcements

At the beginning of 2018, shortly after the Mega project was taken over, Managing Director Bruce Deifik said that he had no doubt that he had no doubt that the hotel and casino complex to lead again to successful times and do it better than its predecessors had done. These would have had a miserable economic plan and also not the right prerequisites for how he had it. The Ocean Resort would become one of the world’s best hotel casinos. Just a little more than six months after these pithy sayings, the situation seems to be completely different. Although Deifik denies any sales rumors, the ongoing legal proceedings and information that comes directly from Atlantic City, but suggests something else. The developments in the Ocean Resort Casino remain exciting and will surely keep one or the other surprise ready.