Tropicana Aztar interest sale termination settlement approved

By Caroline Salls

Pittsburgh, Nov. 26 - Tropicana Entertainment, LLC obtained court approval of a settlement with Resorts Indiana, LLC and Eldorado Resorts, LLC that calls for the termination of a purchase agreement for the proposed sale of the membership interests in the Casino Aztar Evansville riverboat casino, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Resorts Indiana and Eldorado agreed to pay $190 million in cash for the casino, as well as a $30 million note and a potential earn out of up to $25 million.

However, as a result of the nation's credit woes and a downturn in the gaming industry, Tropicana said the buyers will most likely not be able to close on the sale.

Specifically, Tropicana said the sale financing terms have been weighed down by the lenders' decision to exercise their maximum flex rights, and the buyers have not received necessary gaming approvals, largely because of the financing troubles.

In addition, Tropicana said some of its primary creditor constituencies have objected to the sale and are preparing for a "full-fledged evidentiary hearing," which would drain the estate's resources and distract the company from the restructuring process.

As a result, Tropicana said the parties have agreed to terminate the purchase agreement.

Tropicana, a Fort Mitchell, Ky.-based gaming entertainment provider, filed for bankruptcy on May 5, 2008. The Chapter 11 case number is 08-10856.

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