Tropicana and Bondholders Squabble Causing Trouble For Casino Sale

Tropicana Entertainment LLC has lost the license for its Atlantic City casino and is in the middle of selling the casino. A battle with bondholders, however, is causing problems in the casinos potential sale.

Tropicana is claiming that bondholders are hurting the potential sale of their Atlantic City casino. The casino was stripped of its license last year for not keeping the casino up to a first class level.

The Atlantic City casino has been placed into the hands of a trustee. On Friday, Tropicana made their case in court filings that they did not default on a $960 million note since losing their license.

William Yung III is the owner of Tropicana and lost control of the casino back in December. Bondholders believe that they are within their rights to be paid now, before the sale of the casino.

Tropicana has an agreement with banks that they will sell not only the Atlantic City casino, but also two others before June. This will take care of some of the debt the company has accumulated.

The company claims that even though management has changed, bondholders do not have a right to declare a default because ownership has never changed hands.

February 11, 2008
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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