Tropicana's deal with Eldorado, Resorts Indiana unravels as FTC ends waiting period

By Lisa Kerner

Charlotte, N.C., Nov. 24 - The Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period in the proposed sale of the membership interests in Tropicana Entertainment, LLC's Casino Aztar Evansville riverboat casino to Eldorado Resorts, LLC and Resorts Indiana, LLC, according to a government release.

On Friday, Tropicana asked the court to approve a settlement with Resorts Indiana and Eldorado that would terminate the purchase agreement, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Resorts Indiana and Eldorado agreed to pay $190 million in cash for the casino as well as a $30 million note and a potential earn-out of up to $25 million, it was previously reported.

However, Tropicana said the buyers will most likely be unable to close on the sale, citing the nation's credit woes and a downturn in the gaming industry.

In addition, some of Tropicana's primary creditor constituencies objected to the sale and were preparing for a costly evidentiary hearing, the company said.

Tropicana, a Fort Mitchell, Ky.-based gaming entertainment provider, filed for bankruptcy on May 5, 2008. The Chapter 11 case number is 08-10856.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.