155 East Tropicana exploring options, relying on cash flow, capital improvement

By Caroline Salls

Pittsburgh, Aug. 14 - 155 East Tropicana, LLC is exploring its options and will need to rely on the continued improvement of its cash flow from operations or its ability to raise capital through additional borrowing or equity infusion, according to a 10-Q filed with the Securities and Exchange Commission.

The company said its options could include changes to its business model, capital improvements or a sale of some or all of its assets.

According to the 10-Q, the company's operating cash flows have fallen short of covering debt service and capital expenditure requirements, resulting in bond rating downgrades and potentially affecting its ability to raise capital in the future.

However, 155 East Tropicana said the underlying value of its real estate and other assets could provide collateral for raising capital if needed.

Based on maintaining its current level of cash flow from operations, the company said it believes it has the flexibility to cover operational contingencies, working capital needs, capital expenditures and debt service obligations for the next 12 months through the use of cash, its cash flow from operations and its ability to draw against its $15 million credit facility, along with other available equipment financing.

155 East Tropicana owns the Hooters Casino Hotel in Las Vegas.

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