The California development company that plans to buy Atlantic City's Trump Plaza Hotel and Casino for $20 million says the deal is temporarily on hold.
In a statement issued late Friday, the Meruelo Group said the sale cannot currently be completed as planned because Trump Entertainment has been unable to obtain the release of a mortgage held by a “senior secured lender.”
“We are disappointed to announce that our acquisition of the Trump Plaza cannot be completed as planned at this time because Trump Entertainment has been unable to obtain a release of the mortgage held by their senior secured lender,” the Meruelo Group said in a statement, according to The Press of Atlantic City.
When the deal was announced in February, Meruelo said it hoped to close the sale by May 31.
The Press of Atlantic City says Trump spokesman Brian Cahill confirmed Meruelo's statement, but had no further comment on the matter.
The Meruelo Group was seen as a savior for the troubled property. Trump Plaza finished dead last in 2012 in gambling revenue among Atlantic City’s dozen casinos, grossing just $102.5 million. Its gambling revenue plunged 25 percent overall for the year, including 46 percent at the table games.
Xavier Gutierrez, chief investment officer for the Downey, Calif.-based Meruelo Group, did not respond Saturday to a request for comment from The Associated Press.
The Trump Plaza opened in May 1984 and cost $210 million to build.