Tropicana Files For Bankruptcy As Casino Market Crumbles

Tropicana Entertainment LLC has owned some of the most popular casinos in the world. They have run into financial trouble in these slow economic times, and on Monday, the company filed for bankruptcy.

The group missed an interest payment to Credit Suisse Group. The payment was due in response to a $1.32 billion loan that was given to Tropicana. Once the payment was missed, economic pressure grew on the company.

The casino industry, which many thought would be exempt from the economic instability of the country, has seen their revenue numbers fall fast. Many within the industry are worried about the recent trends which suggest that this slow time might not be an aberration.

Las Vegas, which has been a city that has survived economic trouble in the United States before, is struggling to stay afloat. Projects that were scheduled have been canceled, and revenue is just not reaching expectations.

The bankruptcy filing for Tropicana comes as protection against creditors. The company believes the filing will help regain economic stability. "I really view this as a positive step," said Scott Butera, President of Tropicana Entertainment LLC. He went on to say that Tropicana is, "cash-flow positive and in very constructive dialogue with our lending groups."

Columbia Sussex Corp., which is also owned by Tropicana owner William Yung III, will not be part of the bankruptcy proceedings.

May 6, 2008
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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