Hooters Casino Hotel: stipulation agreement may lead to bankruptcy exit in late March

By Lisa Kerner

Charlotte, N.C., Dec. 22 - 155 East Tropicana, LLC and 155 East Tropicana Finance Corp., along with related debtors and debtors-in-possession, entered into a stipulation agreement with Canpartners Realty Holding Company IV LLC that will extend the debtors exclusivity periods for the plan process and allow Canpartners to file a competing plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Nevada.

Under the stipulation order, the debtors will file, no later than Jan. 3, a plan that contemplates the sale of their business and all assets, excluding about $10.6 million cash on hand at Nov. 28.

The order also outlines treatment of creditors under the proposed plan, including payment in full of allowed administrative claims out of the available cash on hand, and separate classification and payment in full of the allowed senior secured credit facility claims, evidenced by proofs of claim nos. 109 and 2.

Anticipated deadlines under the stipulation order include approval of the bidder protection motion and the sale motion by Jan. 20, completion of the bidding and sale hearing by Feb. 17, plan confirmation by March 2 and an effective date of the proposed plan by March 30.

As previously reported, 155 East Tropicana asked to extend its exclusive filing period by 60 days to Jan. 28 and its exclusive solicitation period by 90 days to April 28 in order to conclude a transaction process and protect its exclusivity. A hearing was set for Nov. 29.

Canpartners had filed motions seeking termination of the exclusive periods and objecting to the extension request.

155 East Tropicana, owner of the Hooters Casino Hotel in Las Vegas, filed for bankruptcy on Aug. 1 in the U.S. Bankruptcy Court for the District of Nevada. The Chapter 11 case number is 11-22216.

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