Cordish makes alternative bids for Tropicana

September 30, 2008

Cordish Co., the Baltimore-based real estate developer looking to become a major player in the casino business, has made two alternative bids for bankrupt Tropicana Entertainment LLC's casino in Atlantic City, N.J. - an all-cash bid of $575 million, as well as a cash-and-debt deal the firm values at $700 million, according to the casino's court-appointed trustee.

Cordish is also proposing a $100 million face-lift for the troubled casino hotel after the deal goes through, trustee Gary Stein said.

The developer, which helped revitalize the Inner Harbor with the development of Power Plant Live, was chosen by Stein as a potential buyer in what would be a bankruptcy court auction of Tropicana. Other bidders could top Cordish's offers. Cordish developed the Walk, Atlantic City's popular downtown shopping district between the convention center and the boardwalk casinos.

Stein released additional details about Cordish's offer yesterday, a few days after the former owners of the Tropicana raised questions about the proposed deal, particularly the value of securities Cordish was pledging in addition to cash. Tropicana said it would go to court to block the proposed sale to Cordish, claiming the price is not high enough.

From Sun news services