Griffin Lawyers Outline Trust Proposal for Gaming Regulators
LAWRENCE TOWNSHIP, N.J. (AP) _ A lawyer for entertainer Merv Griffin has proposed a trust agreement in which Griffin would take control of Resorts International Inc. stock and then place the Atlantic City casino under a trust headed by a former industry executive.
The Casino Control Commission was to rule today on the proposal, which could clear the way for Griffin to apply for interim authorization to run the casino. He is trying to buy it from developer Donald Trump and other shareholders.
This morning, Resorts International adjourned a special stockholders meeting in Atlantic City because not enough votes were cast to approve Griffin’s offer to acquire the hotel-casino business.
Company head I.G. ″Jack″ Davis said the American Stock Exchange erroneously reported the meeting would be held Sept. 13 so an insufficient number of votes were cast.
The meeting was scheduled to resume Tuesday at 3 p.m. at the Atlantic City casino, he said.
Under a proposal outlined to the commission Thursday by lawyer Nicholas Casiello, the Griffin Co., solely owned by the former talk show host, would take control of the Resorts stock. The company in turn would be placed under a trust headed by Al Luciani, a former casino executive.
The state Attorney General’s Office has opposed that arrangement. Deputy Attorney General Mary Jo Flaherty told commissioners the stock should be placed directly under the control of the trust, rather than Griffin’s company.
Griffin has agreed to buy Resorts stock for about $300 million and sell back to Trump the unfinished Taj Mahal casino complex.
The deal is contingent on state approval of a trust agreement and an interim authorization for Griffin to operate the casino.