05 May 2008

Another Sign of Our Recession

Gaming companies have been under severe pressure, and the Wall Street Journal reports after hours tonight that Tropicana Entertainment LLC is filing for bankruptcy protection.

Kentucky-based Tropicana -- with a small casino kingdom that includes the famed Tropicana Resort & Casino in Las Vegas and a host of small regional casinos -- missed an interest payment Friday on a $1.32 billion loan with lender Credit Suisse Group, said two people familiar with the matter. Tropicana isn't expected to make the payment, these people said. Missing the payment terminates a forebearance agreement the company had with bondholders, putting further pressure on the gambling company (WSJ.com).
The Business Courier of Cincinnati had a story on the Cincinnati-based firm last week, laying out the company's struggles with bondholders to force the firm into bankruptcy to gain access to the lucrative land under the Tropicana in Las Vegas. The company's press release regarding the filing and pending reorganization.

EDIT

NY Times article: Economic Troubles Affect the Vegas Strip

1 Comments:

Blogger sbvor said...

Just a mosquito bite in the context of the larger economy.

It is increasingly unlikely that we are currently in a recession:
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The Recession of 2008 That Wasn’t?
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10:23 AM  

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