Tropicana files for bankruptcy, casinos keep going

[UpInArms]

Source: Reuters

NEW YORK, May 5 (Reuters) - Privately held Casino operator Tropicana Entertainment LLC, which had its New Jersey casino license pulled last year, said it filed for bankruptcy protection on Monday.

The Chapter 11 filing marks one of the largest bankruptcies so far this year and underscores a decline in the fortunes of casinos as the gambling boom of the past few years fades in the face of an economic slowdown.

<snip>

Tropicana said in a regulatory filing last week that it had received a default notice from Credit Suisse Group (CSGN.VX: Quote, Profile, Research), the agent for its lenders on a $1.3 billion credit agreement.

The company said in the filing with the U.S. Securities and Exchange Commission that its existing forbearance agreement with lenders was dependent on payment of a fee of up to $3 million to lenders by the end of Monday, and that restructuring in bankruptcy was a possibility if that condition was breached.

Read more: http://www.reuters.com/article/bondsNews/idUSN0542114220080506?sp=true

---

looks like that 2006 acquistion just loaded up some major debt for this corporation - and the big banks are going to be the ones to be holding the empty bag

[IntravenousDemilo]

1. Please don't make me switch to Minute Maid! n/m

[DiverDave]

2. Bailout, Maybe?

because, ya know, the casino industry is vital to the U.S. economy.

( I hope I don't need that sarcasm thingy)

[Frank Cannon]

3. I don't think the sarcasm thingy even applies

I'm sure such a thing is being considered right now.

It's funny; just the other day, my wife and I were discussing the economy and it's effect on the casinos. I thought they might be having a harder time as people used more and more of their precious income on the basics of survival. She thought the casinos might be doing BETTER as people spent even more of their money trying to win the jackpot that will solve all their problems. Looks like I might be at least partially right.

[pokercat999]

4. Their problems started a few years ago when a

construction accident killed four people working on their new parking garage. Having recently been in their poker room (an old haunt rarely visited these days) the dealers were constantly joking (black humor) about their upcoming demise. At the time the rumor was that Foxwoods was going to buy the Trop....guess that didn't happen. In poker rooms at other casinos (poker players continuously chat while playing) the rumors were about bedbugs and filthy rooms, poor service and worse food.

I had a lot of good times in the Trop and know a lot of good hard working "regular" people that will be hurt by it's failure. I hope they find a way to restore their former elegance and good service. I'd love to see a ESOP type employee buyout.