Tropicana creditors committee obtains court OK to examine Yung, Columbia Sussex

By Jennifer Lanning Drey

Portland, Ore., July 10 - Tropicana Entertainment, LLC's official committee of unsecured creditors was granted court approval to examine the company, William J. Yung III and Columbia Sussex Corp. and to issue subpoenas requiring production of related documents, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Tropicana operates a series of management contracts with Columbia Sussex, which is wholly owned by Yung.

The creditors committee's motion to examine the parties referenced a prior motion filed by an informal group of Tropicana's 9 5/8% senior subordinated noteholders asking the court to appoint a Chapter 11 trustee. The prior motion alleged each of Tropicana's debtors is operating under the "absolute control" of Yung.

In the committee's motion for permission to examine the parties, the creditors said the trustee motion raised serious issues regarding Yung and Columbia Sussex's ability to continue to serve in a management and/or supervisor capacity at Tropicana but did not address what causes of action, if any, exist against Yung or Columbia Sussex.

The committee said determining whether causes of action exist against Yung or Columbia Sussex is critical in clearing the way to begin discussions for a plan of reorganization.

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

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