Tropicana Files For Bankruptcy, Seeks $67 Million DIP
The company, based in Crestview Hills, Ky., has $2.9 billion worth of assets and $2.4 billion worth of debts.
May 9, 2008
Tropicana Entertainment filed for Chapter 11 bankruptcy protection last week in Delaware's bankruptcy court and was looking to borrow $67 million through a debtor in possession loan.
The company, based in Crestview Hills, Ky., has $2.9 billion worth of assets and $2.4 billion worth of debts. Debtor counsel are Kirkland & Ellis and Richards Layton & Finger. Lazard Freres has been hired as the debtor's financial advisor, while AlixPartners has been brought on as restructuring advisor.
Court papers show the debtor filed for bankruptcy because of "a liquidity crisis caused by, among other things, the decision by the New Jersey Casino Control Commission in December 2007 to deny renewal of the debtor's operating license for Tropicana Atlantic City" as well as a depressed business for the hotel and gaming industry.
Court documents show the debtor looked to access up to $30 million of the DIP on an interim basis under the interim DIP order. The administrative agent, collateral agent, sole bookrunner and lead arranger of the DIP is Silver Point Finance.
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