Michael J. Viscount was featured in Law360's article, "Odds Are NJ Casino Closures Will Spark Deal Wave." Full text can be found in the July 18, 2014, issue, but a synopsis is below.
Attorneys expect to see hotel and real estate companies take
advantage of opportunities in the East Coast market at reduced
prices as a result of multiple Atlantic City casinos recently
closing their doors.
Michael Viscount explains that the casino shutterings are the market's way of right-sizing itself in the face of increased competition being built up in Pennsylvania, New York, Delaware, Maryland and West Virginia.
He continues that, "If one of the objectives is to spread the customer base among a smaller number of casinos, then it makes economic sense from the owner of the property to deed-restrict it so it can't be used as a casino."
In regards to his client, Revel Inc., who Viscount is representing in its bankruptcy, he says he expects there to be a competitive auction.
"The type of owner will be someone who has cash and will be able to afford to hold it without operations or with operations ... someone with a long-term view, someone who doesn't need to finance the transaction," Viscount concludes.
Michael Viscount explains that the casino shutterings are the market's way of right-sizing itself in the face of increased competition being built up in Pennsylvania, New York, Delaware, Maryland and West Virginia.
He continues that, "If one of the objectives is to spread the customer base among a smaller number of casinos, then it makes economic sense from the owner of the property to deed-restrict it so it can't be used as a casino."
In regards to his client, Revel Inc., who Viscount is representing in its bankruptcy, he says he expects there to be a competitive auction.
"The type of owner will be someone who has cash and will be able to afford to hold it without operations or with operations ... someone with a long-term view, someone who doesn't need to finance the transaction," Viscount concludes.
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