Stockton University announced Tuesday that it has filed several proofs of claim in federal bankruptcy court against Caesars Entertainment for damages pertaining to the December agreement to purchase Atlantic City’s Showboat casino and hotel.
The $18 million deal for the property, which the Galloway-based school had planned to transform into a satellite campus in Atlantic City, was announced roughly a month before Caesars and its Showboat-related entities filed for Chapter 11 bankruptcy in January.
Stockton claims in its filed proofs, which range from breach of contract to fraud to the concealment of material facts, that despite assuring the university it would do so, Caesars failed to resolve the restrictions placed on the property by a 1988 covenant that limit its use to a casino hotel. The university also asserts that it was not informed of Caesars’ plans to file bankruptcy at the time of the sale.
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