Loss of License Protects Tropicana Atlantic City from Corporate Parent’s Chapter 11

The Tropicana Atlantic City casino today said that it is not part of the Chapter 11 filing by corporate parent, Tropicana Entertainment L.L.C., and is continuing normal operations.Tropicana Atlantic City has not been controlled by Tropicana Entertainment since Dec. 12, 2007, when former New Jersey State Supreme Court Justice Gary Stein was appointed to oversee the hotel’s operations as trustee and later as conservator. This followed the denial of the renewal of its operating license to William Yung, president of Columbia-Sussex, parent company of Tropicana Entertainment.The New Jersey Casino Control Commission’s statement following that 4-1 vote, said that “Tropicana Casinos and Resorts, failed to meet strict state licensing requirements, including a lack of business ability, a lack of financial responsibility and a lack of good character, honesty and integrity.”CPN reported on April 4 that the Commission also denied a request for Tropicana to get that license back as requested by Justice Stein in an effort to prevent this bankruptcy, thus making sale of the property more difficult. The commission did grant an extension of the sale deadline to June 9.Mark Giannantonio, president & CEO 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.Among current initiatives, Tropicana Atlantic City will continue a rebuilding program that includes the May 15th opening of a new slot area, Havana Roof Top Slots, and the Memorial Day weekend opening of the new Rumba Lounge.