Tropicana debtor sues for deposit, attorneys' fees, alleges Horizon Casino Hotel purchase breach

By Caroline Salls

Pittsburgh, Sept. 24 - Tropicana Entertainment, LLC debtor Columbia Properties Vicksburg, LLC filed a lawsuit against the buyer of its Horizon Casino Hotel in Vicksburg, Miss., amid allegations of anticipatory breach of the asset purchase agreement, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to Columbia Properties' complaint, Nevada Gold Vicksburg, LLC agreed to buy the Horizon Casino Hotel for $35 million but "now unjustifiably refuses to close under the terms of the agreement."

As a result, Columbia Properties said it is entitled to keep Nevada Gold's $2 million deposit, plus interest, for liquidated damages, as well as payment of attorneys' fees and costs in connection with the purchase agreement breach.

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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