Tropicana Entertainment Case Files in Delaware
Last evening, Tropicana Entertainment LLC and affiliated companies filed petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The debtors, whose casino operations include the landmark Tropicana Casino & Resort in Las Vegas, and ten (10) other casinos, have arranged $67 million in debtor-in-possession financing from Silver Point Finance LLC.
Tropicana has been in the news because New Jersey regulators stripped the debtors of their license to operate the Tropicana Resort and Casino Atlantic City. This event set off a crisis that culminated in these filings. After New Jersey stripped the debtors of their license to operate the Tropicana Atlantic City, the Indiana Gaming Commission ruled that the failure to renew the New Jersey license imperils the debtors' ability to operate the Casino Aztar Evansville. The debtors agreed to sell the Aztar to resolve this issue with the Indiana Gaming Commission.
The Tropicana Atlantic City, which currently is operated by a trustee, and the Casino Aztar Evansville, will likely be sold under section 363 of the Bankruptcy Code. The debtors hope to use the bankruptcy process to restructure their businesses and continue to operate their remaining casinos and other business interests. The Honorable Kevin J. Carey is presiding over these cases.
