Tropicana misses credit facility interest payment following noteholder forbearance extension

By Caroline Salls

Pittsburgh, May 2 - Tropicana Entertainment, LLC received an extension to its noteholder forbearance agreement to May 15, but the company subsequently received a notice of default on its $1.321 billion credit agreement that demands payment of an April 30 interest payment within five days, according to an 8-K filed with the Securities and Exchange Commission.

According to the filing, the acceleration of any credit agreement obligations for failure to make an interest payment would constitute grounds to terminate the noteholder forbearance agreement.

As previously reported, the noteholder forbearance was originally intended to allow the company and the noteholders to explore a consensual restructuring of the notes, which could involve a bankruptcy filing.

Under the noteholder forbearance extension, the company was also required to pay a $3 million forbearance fee by 11:59 p.m. ET on May 5.

In addition, Tropicana said Robert Kocienski has been named senior vice president, chief financial officer and treasurer, effective immediately.

Kocienski is succeeding Theodore R. Mitchel, who resigned to focus on his role as vice president and chief financial officer of affiliated company Columbia Susses Corp.

Tropicana is a Fort Mitchell, Ky.-based gaming entertainment provider.

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