Hedge fund Luxor Capital takes control of Ocean Resort CasinoBusiness | 29 Jan 2019 11:46 am
A New York hedge fund that lent money to Atlantic City’s Ocean Resort Casino is assuming ownership of it.
Luxor Capital Group was identified as the new owner in a press release Monday from the casino. The company, which is not related to the Luxor casino in Las Vegas, will take over the ownership interest of Bruce Deifik and his family.
Luxor Capitol will assume control once it receives interim authority to own a casino. Until it gets that approval, which could come within three to four months, a trust will be created for the casino’s temporary ownership.Once Luxor Capital completes a promised $70 million investment into the property, a trustee will be appointed to oversee the trust until the company is deemed suitable to hold a casino license in New Jersey.
The casino-hotel plans to operate normally during the transition. The ownership change comes less than seven months after the property’s re-opening.
"We are incredibly proud of the progress our team members have made in establishing Ocean Resort Casino as one of the premier gaming and leisure destinations in the United States,” said Frank Leone, the casino’s CEO. "We are thankful for the support we have received from the broader Atlantic City and New Jersey community and look forward to an exciting 2019.”
Deifik, who earlier this month said he would retain a small, non-controlling interest in the casino, will have no ownership of it at all. In announcing the casino would change hands earlier this month, Deifik said the new ownership would invest $70 million to help get the property through the slow winter months.
Ocean Resort was one of two formerly shuttered casinos that reopened the same day last June, along with Hard Rock.-AP