Blatstein Seeks $21.5 Million Lifeline for Showboat as Lender Challenges Plan to Halt Foreclosure

Atlantic City developer proposes high-interest personal loan to address mortgage defaults, but lender argues the deal would not resolve the foreclosure case.

ATLANTIC CITY, N.J. — Developer Bart Blatstein is attempting to prevent the foreclosure of Atlantic City's Showboat Hotel through a proposed $21.5 million financing arrangement, but the property's mortgage holder is challenging the plan, arguing that it would not satisfy the outstanding debt.

The latest developments in the ongoing legal battle were detailed in court filings reported Saturday, November 14, by NJ.com.

The dispute centers on the Showboat property along the Atlantic City Boardwalk, where Blatstein has invested heavily in transforming the former casino into a family-oriented entertainment destination featuring a hotel, indoor waterpark, arcade, restaurants and other attractions.

According to NJ.com, Computershare Trust Co., which represents bondholders holding the property's mortgage, filed a foreclosure lawsuit in June. The debt originated with a $48.5 million loan issued by Barclays Capital Real Estate Inc. in 2022.

The mortgage holder alleges that Blatstein owes $13.6 million and has not made a payment since April 2025. The lender has also cited claims filed by contractors seeking payment for work performed at the property.

Now, Blatstein's attorneys say they have identified a potential financial solution.

A $21.5 Million Financing Proposal

According to the court documents described by NJ.com, Blatstein's company initially reached an agreement on October 26 with BRB Partners, a Las Vegas-based private investment and financing firm.

The proposed $21.5 million investment would have given BRB an ownership interest in the property.

However, Computershare rejected the arrangement on November 4, citing mortgage provisions restricting ownership changes without the lender's approval.

BRB subsequently restructured the transaction as a personal loan to Blatstein rather than an investment in the hotel.

Under the revised proposal, approximately $15.4 million would go directly to the mortgage holder to address missed payments, while the remaining funds would help satisfy judgments involving contractors.

The proposed loan carries an 18% annual interest rate over five years, with payments of approximately $322,000 per month, according to NJ.com.

The Showboat property itself would not serve as collateral for the personal loan.

But the proposed financing comes with several significant conditions.

BRB would require the removal of the court-appointed receiver, the return of control over the hotel's operations and finances to Blatstein's company, and Blatstein's continued position as majority owner.

Blatstein's attorneys have asked the court to suspend the foreclosure proceedings for up to 65 days to allow the financing to close.

If the loan does not materialize within that period, the lender would be permitted to renew its efforts to obtain a receiver.

Mortgage Holder Questions the Deal

The lender is opposing the proposal, arguing that Blatstein's plan would not actually cure the mortgage default.

According to NJ.com, Computershare's attorney, Sarah Fehm Stewart, argued in a November 12 court filing that the entire outstanding loan balance has already been accelerated, meaning the full debt is due rather than simply the missed payments.

Stewart also challenged the circumstances surrounding the revised loan agreement.

The original written financing proposal submitted November 6 reportedly did not specifically require removal of the receiver. That condition appeared in a subsequent version.

The lender contends that the change was intended to prevent the receiver from examining the property's financial records.

Blatstein's attorneys dispute that characterization, maintaining that the lender's requirement to remove the receiver existed from the beginning and was merely clarified in writing.

The competing arguments leave a fundamental question before the court: whether the proposed financing provides a legitimate path toward resolving the financial dispute or simply delays the foreclosure proceedings.

Court-Appointed Receiver Remains a Major Issue

In October, a Superior Court judge authorized the appointment of a receiver with limited authority to collect rental income and pay certain property expenses, including taxes and insurance.

The judge did not grant the receiver complete operational control of the hotel.

The mortgage holder is also seeking a ruling in its favor without a trial, a move that could advance the foreclosure process.

As of the latest reporting, it was unclear whether the judge had ruled on that request.

Richard Bosworth, identified in court filings as BRB's manager, argued that the Showboat Hotel operates as part of an interconnected entertainment complex that includes the neighboring Island Waterpark, arcade and restaurants.

He maintained that dividing financial and operational authority between Blatstein's company and a receiver could create inefficiencies and undermine the business's ability to generate revenue needed to repay the proposed loan.

Blatstein's attorneys have also argued that approximately 500 jobs are at stake.

That figure represents a claim made by his legal team and has not been independently verified.

Millions Invested in Showboat's Transformation

The foreclosure battle comes after years of investment in the former casino property.

Showboat originally opened as a casino hotel in 1987 before closing its gambling operations in 2014 during a wave of Atlantic City casino shutdowns.

Blatstein reopened the property as a nongaming hotel in 2016 and subsequently pursued an entertainment-focused redevelopment strategy.

The property now includes approximately 475 hotel rooms, an arcade and indoor go-kart attractions.

Its most ambitious addition was the Island Waterpark, a roughly 120,000-square-foot indoor attraction that opened in 2023.

The waterpark includes slides, a lazy river and children's attractions, and was intended to help establish Showboat as a year-round destination for families visiting Atlantic City.

The development has also faced contractor-related legal disputes.

According to NJ.com, a contractor filed a lawsuit in 2024 alleging approximately $1.7 million was owed for waterpark construction work. That case was closed in 2025 after the debt was paid.

Showboat's Future Remains Uncertain

The latest foreclosure developments arrive as Showboat continues to pursue additional entertainment and business opportunities.

New Jersey regulators recently approved plans for gaming technology company Evolution to establish a live-dealer studio operation at the Showboat property, an arrangement that would bring another business use to the former casino complex.

The operation would support online casino gaming rather than reopen Showboat as a traditional casino.

Meanwhile, Blatstein has continued to pursue additional development proposals intended to expand the property's appeal as an Atlantic City entertainment destination.

Those plans now exist alongside a legal dispute that could significantly affect the property's financial and operational future.

The central issue remains unresolved.

Blatstein's legal team maintains that the proposed $21.5 million personal loan offers a way to address outstanding obligations while preserving the hotel and its associated businesses.

The mortgage holder argues that the arrangement falls short of satisfying the debt and has challenged the conditions attached to the financing.

Until the court rules or the parties reach an agreement, the possibility of foreclosure remains.

South Jersey NewsBeat will continue following the Showboat foreclosure proceedings and their potential impact on Atlantic City's tourism industry, redevelopment efforts and local employment.