Dunes Casino Hotel Files For Protection From Creditors
ATLANTIC CITY, N.J. (AP) _ San Diego, Calif., developer Jack Bona has filed for protection from his creditors under federal bankruptcy laws, soon after buying out his former partner in the stalled Dunes Casino Hotel for $21 million.
But Bona said in a statement that he expected the reorganization under Chapter 11 of the Federal Bankruptcy Act ″to be completed in very short order and that all payments to creditors will be provided for.″
″We are very hopeful of proceeding with construction of the new casino hotel as soon as possible thereafter,″ Bona said in his statement, read Monday by his spokesman, Leon Zimmerman.
Bona recently bought out the 49 percent share of the project formerly owned by Dunes Hotels & Casinos Inc. Queens Ventures Inc., a Nevada-based corporation owned by Bona, who already held 51 percent of the interest in the project.
Bona formed a new company called Venture Development Inc. to buy out the Dunes’ share, Zimmerman said, adding that the Nevada Dunes was not involved in the action filed on Friday in U.S. Bankruptcy Court in Camden.
The Chapter 11 filing came as the Dunes and the Golden Nugget are engaged in a court battle stemming from an agreement for the Golden Nugget to sell a two-acre parcel of land to the Dunes for $18 million. The Dunes needs the land for its project.
Each side claims the other has reneged on the terms of the agreement.
Bankruptcy court papers show that the Dunes Casino Hotel’s assets as of July 31 - $28.9 million - exceeded its total liabilities of $24.5 million.
Construction of the Dunes, located near the Golden Nugget on the southern- most part of the Boardwalk, was halted in 1979 when the developers ran out of money.