ATLANTIC CITY, N.J. (CBS) – One of the more troubled casinos in Atlantic City has bought itself a new financial lease on life with a deal approved by New Jersey’s Casino Control Commission.

Under the plan, the banks will clear the outstanding debt on the old Atlantic City Hilton (now called just “ACH“) in return for a pair of casinos in Mississippi  now under the control of ACH’s parent company.

That, plus $15 million of new investment and $9 million in insurance proceeds, gives ACH another year of financial stability, according to casino CEO Michael Frawley.

“We do realize that we’re not going to save our way out of this, and we have no intention of doing so,” he said today.  “Labor is a significant focus of where we’re going.”

There will be layoffs among the current staff of nearly 2,000, and those who remain will see salaries cut.

The size of the casino will shrink, with more emphasis on slot machines, and the facility will be rebranded — again.

Reported by David Madden, KYW Newsradio 1060