155 East Tropicana gets loan default notice after grace period ends

By Caroline Salls

Pittsburgh, June 17 - 155 East Tropicana, LLC has received a notice of default on its credit facility as a result of its failure to make the interest payment due April 1 on its senior secured notes within the grace period, according to an 8-K filed with the Securities and Exchange Commission.

The default also stems from the company's failure to make required representations in connection with the delivery of its financial statements for the periods ended Jan. 31, Feb. 28, March 31 and April 30.

As previously reported, the company no longer has the option of paying the Libor interest rate on the credit facility because of an earlier default but must instead pay the Wells Fargo Prime rate.

The interest rate was also increased 2% on May 1.

155 East Tropicana said it is in talks with the lender group regarding the terms of a forbearance agreement.

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

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