Tropicana Entertainment granted approval to remarket Casino Aztar

By Jennifer Lanning Drey

Portland, Ore., Sept. 16 - Tropicana Entertainment, LLC obtained court approval to auction its Evansville, Ind.-based Casino Aztar from the U.S. Bankruptcy Court for the District of Delaware, according to a source familiar with the case.

The company had previously agreed to sell the property to Eldorado Resorts but asked the court to approve the auction in order to obtain the highest possible sale price for the casino, Tropicana said previously.

A motion filed by Eldorado to compel assumption or rejection of the sale agreement was denied, according to the source.

When requesting the approval to auction the property, Tropicana said approval of the sale process would help it decide whether selling the property or maintaining ownership after it emerges from bankruptcy is the appropriate path for realizing its maximum value.

Tropicana said the sale procedures motion complies with its sales contract with Eldorado Resorts, including a provision that requires Tropicana to pay Eldorado a $6.6 million breakup fee and reimburse up to $500,000 of its sale-related expenses if it exercises its right to seek another buyer and subsequently sells the casino to someone other than Eldorado.

Eldorado's offer called for a purchase price of $190 million in cash, plus a $30 million purchase price note and an earnout of up to $25 million.

According to court documents, Tropicana has also agreed to pay a filing fee of up to $125,000, as well as various other fees and expenses, and reimburse Eldorado's $245,000 ticking fee as an incentive for Eldorado to stay on as the backup bidder.

Under the approved bid procedures, the company said it plans to begin remarketing the casino in September.

The auction will be held during the week of Nov. 10, and the sale is required to close by Dec. 31.

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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