PokerStars files Temporary Restraining Order against Atlantic Clu
Well, this just got interesting. On Monday PokerStars via their parent company the Rational Group filed a temporary restraining order (TRO) against the Atlantic Club Casino – broken down to Resorts International Holdings, Eric Matejevich, Michael Frawley, RIH Propco and Irwin Apartment Trust. The TRO claims that the defendants acted in bad faith after their deal to purchase the struggling Atlantic City property was terminated.
So what does the TRO do? Poker blogger and Black Friday/FTP investigator Diamond Flush went through all of the details and the meaning of each on her blog, which you can read here: Diamond Flush Poker. She also provided a helpful summary of eight key points which I have posted below, but I highly recommend visiting her site for the full write-up:
1. Restrict the Atlantic Club from selling, offering to sell, etc, the Atlantic Club to anyone other than Rational
2. Restrict the Atlantic Club from continuing to breach the purchase agreement between the parties until a new closing date is set based upon the buyer obtaining their Interim casino Authorization
3. Declare the termination notice issued by the Atlantic Club on April 27 to be void
4. Reinstate the Purchase Agreement according to present terms until expiration of the review period the Division of Gaming Enforcement and the Casino Control Commission in New Jersey for the ICA
5. Impose a lien on the assets of the Atlantic Club in the amount of monies already paid
6. Impose a resulting trust on all assets of the Atlantic Club in the same amount
7. Prohibit the Atlantic Club from terminating the Agreement in any manner
8. Other further relief that the court determines to be fair
On Monday afternoon the Head of PokerStars Corporate Communications Eric Hollreisser issued the following statement on the PokerStars blog:
The Rational Group (d/b/a PokerStars) today filed a lawsuit in New Jersey Superior Court seeking to restrain the sellers of the Atlantic Club Casino and Hotel from continuing to breach the purchase agreement which was entered between the Rational Group and the seller (who are led by Colony Capital LLC) in December 2012. This step has been taken to protect Rational Group’s rights and interests under the purchase agreement and reflects the Group’s desire to complete the acquisition of the Atlantic Club.
Judge Raymond Batten granted our request for a temporary restraining order (TRO) shortly after the complaint was submitted, confirming the continuation of the existing agreement.
The Rational Group has funded Atlantic Club shortfalls throughout the winter season since October 2012 preventing its bankruptcy and the loss of over 1,800 jobs.
The Rational Group remains entirely committed to resolving this situation, and to its investment in New Jersey, while it continues to diligently work on completing the required licensing process.
So what does all this mean? Right now we will have to wait and see as it plays in court with both the Atlantic Club and PokerStars having several opportunities to respond in the coming weeks. We did learn that PokerStars had already invested some $11 million in the Atlantic Club to keep the casino from declaring bankruptcy. Included among this was a $225,000 investment in a poker room inside the casino.
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