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Tropicana Entertainment Files for Chapter 11 Protection Following Fallout from
Atlantic City Casino Loss; Expects to Maintain Current Staffing Levels
at Nine Casino and Resort Properties
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Company to address debt through comprehensive restructuring 

CRESTVIEW HILLS, Ky. May 6, 2008 - Emphasizing that its casino and resort properties are more than adequately financed and that it will continue to serve customers on a “business as usual” basis, Tropicana Entertainment, LLC today filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code so it can work to maximize the value of the company’s assets through a comprehensive restructuring. 

Nine of the 11 properties owned directly by Tropicana Entertainment are included in the petitions. While the company’s Atlantic City, New Jersey, casino and resort is not part of the filing and is unaffected by it, Tropicana Entertainment intends to coordinate its efforts with the Trustee of the Atlantic City casino to maximize value for the mutual benefit of their common creditors. 

The nine business entities included in the filing are casinos and affiliates that are directly owned by Tropicana Entertainment, LLC. They are: 

  • Bayou Caddy’s Jubilee Casino – Greenville, Mississippi; 
  • Casino Aztar – Evansville, Indiana; 
  • Horizon Casino Hotel – Vicksburg, Mississippi; 
  • Horizon Casino Resort – Lake Tahoe, Nevada; 
  • MontBleu Resort Casino & Spa – Lake Tahoe, Nevada; 
  • River Palms Resort & Casino – Laughlin, Nevada; 
  • Tropicana Express Hotel & Casino – Laughlin, Nevada; 
  • Sheraton Hotel and Belle of Baton Rouge Casino; and 
  • Tropicana Casino & Resort – Las Vegas, Nevada. 
In addition to Tropicana Atlantic City Casino & Resort, the other Tropicana Entertainment property excluded from the filing is the Lighthouse Point Casino, Greenville, Mississippi. Two other casinos owned by parent Tropicana Casinos and Resorts – the Amelia Belle Casino in Amelia, Louisiana, and the Westin Casuarina Las Vegas Hotel, Casino & Spa – are also excluded. 

During the process, Tropicana Entertainment expects to maintain current staffing levels and will fund the majority of ongoing operations from its own cash flow. It has secured $67 million in debtor-in-possession (DIP) financing that it can use to supplement its working capital and ensure each property’s competitive market position. The DIP loan is being provided by Silver Point Finance, LLC of Greenwich, Connecticut. 
 

Tropicana Atlantic City Operating Normally as Its Former
Corporate Parent Seeks Chapter 11 Protection 
ATLANTIC CITY, N.J. - May 6, 2008 - Tropicana Atlantic City, one of the East Coast’s leading casino, entertainment and resort destinations, today said that it is not part of the Chapter 11 filing by its former corporate parent, Tropicana Entertainment, LLC, and is continuing normal operations. 

Mark Giannantonio, President and Chief Operating Officer of Tropicana Atlantic City, said: “I want to emphasize that Tropicana Atlantic City is not part of our former parent company’s Chapter 11 filing. The hotel and casino operations of Tropicana Atlantic City continue in a completely business-as-usual manner. 

“Our continuing and successful efforts to assure our customers of the highest-quality hotel, entertainment and casino experience are in full swing and receiving high praise from reviewers and customers alike.” 

Among current initiatives, Tropicana Atlantic City will continue a rebuilding program that includes the May 15th grand opening of a new slot area, “Havana Roof Top Slots,” the most extraordinary slot environment in Atlantic City. Other current initiatives include the forthcoming, much anticipated grand opening on Memorial Day weekend of the Casino’s new Rumba Lounge, which will include entertainment and video slots and will overlook the Casino floor. 

Mr. Giannantonio continued, “Financially, Tropicana Atlantic City has more than adequate liquidity to meet our current and future operating needs, and we fully intend to meet all of our obligations to employees, vendors and customers alike. In short, today’s action by Tropicana Entertainment should not affect any aspect of our operations.” 

Tropicana Atlantic City has not been controlled by Tropicana Entertainment since December 12, 2007, when former New Jersey State Supreme Court Justice Gary S. Stein was appointed to oversee Tropicana Atlantic City’s operations as trustee and later as conservator following the denial of an operating license to its now-former owner, William J. Yung, III. 

As previously announced, Justice Stein has been charged by the New Jersey Casino Control Commission with selling Tropicana Atlantic City. Justice Stein is currently engaged in discussions with advisors to lenders under Tropicana Entertainment’s Senior Credit Facility and holders of its 9 5/8% Senior Subordinated Notes concerning the best means of effecting such a sale in order to maximize the value of Tropicana Atlantic City. 

Tropicana Atlantic City
Diana Spiers-Knox, 609-340-4507 

“Our company is going into this process from a position of financial and operational strength,” said Tropicana President Scott C. Butera, who will lead the restructuring. “We generate positive operational cash flows and, along with our DIP financing, we have more-than-adequate resources to meet our ongoing financial needs. We will continue to offer our visitors and players a full range of lodging, entertainment and gaming services. 

“The period ahead is an opportunity to work with all of our constituents to address our debt issues and reorganize our business so that we can optimize the value of the company’s assets,” Butera continued. “We are confident we will emerge from this process as a stronger, more competitive brand with a solid financial structure and clearly enhanced fundamentals.” 

In conjunction with the filing, Tropicana Entertainment is seeking approval for a variety of first day motions that will allow it to continue to manage operations in the ordinary course. The motions include requests to make wage and salary payments and other benefits to employees; honor customer programs and certain other pre-petition customer obligations; and pay critical vendors, suppliers, and certain other pre-petition trade claims. This relief will allow the company to operate its business without interruption while it continues restructuring in a controlled process. 

The motions are typical in Chapter 11 filings, and court approval is generally granted promptly. The company intends to pay all providers of goods and services delivered post-petition in the ordinary course of business. 

About Tropicana Entertainment, LLC 
Tropicana Entertainment, LLC, an indirect subsidiary of Tropicana Casinos and Resorts, is one of the largest privately held gaming entertainment providers in the United States. The company operates 540,000 square feet of casino space with 15,000 slot machine positions. With more than 11,000 employees and 8,300 hotel rooms at its properties, it produces in excess of $1.2 billion annual revenue. More information is available at www.tropicanacasinos.com. None of the information contained on the company’s website shall be deemed incorporated by reference or otherwise included herein. 

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Contact:

Hud Englehart
513-533-4800
 

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Also See: Land Owner Park Cattle Co. Gaining Control of the 539 room Lake Tahoe Horizon Casino Resort by Settling Lawsuit Accusing the Owner Tropicana and its President William Yung of 'Running the Place into the Ground' / April 2008
Hilton Hotels Corporation Recognizes Development Champions; William J. Yung, III, Columbia Sussex Corporation, Named the Hilton Brand Developer of the Year / September 2007
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