Tropicana creditors committee motion to modify exclusive periods denied

By Jennifer Lanning Drey

Portland, Ore., Jan. 8 - Tropicana Entertainment, LLC's official committee of unsecured creditors' motion to modify the company's exclusive periods to file a plan of reorganization and solicit votes on the plan was denied Thursday by the U.S. Bankruptcy Court for the District of Delaware, according to an attorney.

The committee had asked for permission to file its own plan of reorganization and related disclosure statement and have them placed on the same track as Tropicana's if the company filed a plan on or before Jan. 12.

In its motion, the committee said the credit market crisis and failing economy had left Tropicana at the mercy of the OpCo and LandCo lenders, whose adequate protection payments would likely choke Tropicana's liquidity before Memorial Day.

"Exclusivity deadlines rapidly approaching, the committee expects the debtors to file a plan essentially turning over the keys to the banks and giving unsecured creditors a token recovery, if any," the committee said.

As a result, the committee said it needed relief from the current exclusivity periods in place so it could pursue its own plan.

Tropicana's exclusive plan-filing period is set to expire on Jan. 12 and the solicitation period on March 13.

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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