Resorts Atlantic City, the nation's first casino to open outside Nevada, began handing itself over late Wednesday to its lenders.
Resorts had not made payments on more than $381 million in debt for more than a year, and a newly formed company consisting of its main lenders, including Wells Fargo, has agreed to cancel the debt in exchange for ownership of the casino.
It could take until Thursday morning for all the necessary paperwork to be signed.
The new company, RAC Atlantic City Holdings LLC, says it has no intention of being a casino operator for long, and wants to sell it as quickly as possible. But the tight credit market and falling casino revenue in many markets could delay that process.