|Kentucky-based casino operator Tropicana Entertainment has filed for bankruptcy protection underscoring the decline in the fortunes of the land-based industry.|
The Chapter 11 filing by the privately held operator marks one of the largest bankruptcies so far this year and follows December’s decision by the New Jersey Casino Control Commission not to renew the license for the firm’s Atlantic City property.
Tropicana, which owns the famed Tropicana casino in Las Vegas along with around eight other properties throughout the United States, reported that its casino and resort properties were ‘more than adequately financed’ and that it expected to continue normal operations and staff levels. The firm also stated that its Tropicana Casino and Resort Atlantic City property, which it is currently taking bids on, is not part of the bankruptcy filing.
The company said it plans to fund operations through its own cash flow as well as $67 million in debtor-in-possession financing provided by Silver Point Finance. In addition, it announced through a regulatory filing last week that it had received a default notice from Credit Suisse Group, the agent for its lenders on a $1.3 billion credit agreement.
Tropicana reported in the filing with the US Securities and Exchange Commission that its existing forbearance agreement with lenders was dependent on payment of a fee of up to three million dollars to lenders by Monday and that restructuring in bankruptcy was a possibility if that condition was breached.
“The period ahead is an opportunity to work with all of our constituents to address our debt issues and reorganise our business so that we can optimise the value of the company's assets,' said Scott Butera, President for Tropicana.