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Tropicana Files For Bankruptcy
Casino Employees Won't Be Affected By Chapter 11, Officials Say
POSTED: 7:23 am PDT May 6,
2008
UPDATED: 8:23 am PDT May 6,
2008
LAS VEGAS -- One of the oldest casinos on the strip is filing for bankruptcy.The Tropicana is having money troubles and is hoping Chapter 11 can help it recover from tough times.According to the Wall Street Journal, Tropicana's president said this is the first and most important step in getting the hotel and casino back to good.Troubles started on Friday Tropicana Entertainment LLC missed an interest payment on a $1.3 billion loan. That payment ended a forbearance agreement with the bondholders.The hotel-casino's cash flow is still positive, the president said. It does about $1 billion a year in sales.Talks with lending groups at this point are said to be constructive; however, casino officials said it's unclear how the long the casino will stay in Chapter 11.Another Tropicana property in Atlantic City has been in trouble for some time, officials said. It is under state control and up for sale there for being so poorly run in the past.About 11,000 people work at the Tropicana on the Strip. Company officials said they should not be affected by the bankruptcy filing.
Copyright 2008 by KVVU.com. The Associated Press contributed to this report. All rights reserved.
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