Tropicana Entertainment LLC, owner of Lake Tahoe Horizon Casino and MontBleu Resort at Stateline among other properties, says it reached a deal with creditors and hopes to emerge from Chapter 11 protection sometime in late April or early May.
Even with the tough market, Horizon and MontBleu Resort Casino & Spa will continue to operate and plan ahead for the summer season, Tom Davis, Horizon Casino Resort spokesman, said.
Former owner William J. Yung III will not hold any positions with the company.
Creditors who are allowed to vote have until April 17 to submit their ballots. If creditors vote to accept the plans and the Bankruptcy Court finds that they meet all statutory requirements at confirmation hearings scheduled to begin April 27, Tropicana hopes to emerge from Chapter 11 soon thereafter.
"Understanding that the backdrop for this effort has been the nation's continuing financial crisis, we commend our lenders and the committee for engaging in a highly productive negotiation," said Tropicana CEO Scott C. Butera. "Our plan is stronger for these efforts because we have been able to take into account the interests of all the company's key stakeholders.
"Our employees have earned our highest respect," Butera said. "Throughout the restructuring process, they have been enthusiastic and extremely loyal. Now, with renewed regulatory and community relationships, stronger employee relations, and better overall business systems in place, we feel we have the resources necessary to operate in the highly competitive hospitality and gaming industry."
In April 2008, a settlement agreement was reached in Douglas County District Court after Park Cattle Co., the owner of the property on which the Horizon Casino Resort sits, sued casino subsidiaries of Tropicana, Columbia Sussex. The settlement agreement was for $165 million.
Edgewood Cos., which includes Park Cattle Co., claimed the Tahoe property was not properly maintained.
The fallout from losing its New Jersey casino license in December 2007 forced Tropicana Casino and Resort casinos to seek and subsequently get Chapter 11 bankruptcy protection in May 2008.
Horizon and MontBleu Resort Casino & Spa were among the Tropicana casinos in bankruptcy protection.