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Hooters Hotel-Casino Owner to Mull Over Options

LAS VEGAS-With the $225-million sale of the casino-hotel terminated, 155 East Tropicana LLC says it will consider strategic alternatives.

By Brian K. Miller | Updated on June 23, 2008

LAS VEGAS-The owner of the Hooters Hotel-Casino here says it will mull over its options now that the $225-million sale of the asset has been terminated. 155 East Tropicana LLC’s board of directors says it remains confident in the value of the property and in the coming months will “consider strategic alternatives.”

The buyer was to be Hedwigs Las Vegas Top Tier LLC, an affiliate of an investment group led by NTH Advisory Group LLC, which made an unsolicited offer for the property. The sale was terminated earlier this month when Hedwigs missed a required $500,000 payment. Hedwigs made a total of $5.5 million in non-refundable payments toward the purchase, according to 155 East Tropicana.

Under the terms of the purchase agreement, first announced in January, Hedwigs was to purchase essentially all of the assets of 155 East Tropicana for $98 million in cash, the payment of certain accrued royalties, and the assumption of certain outstanding liabilities, including the company’s $130 million in principal amount of 8 ¾% Senior Secured Notes due 2012.

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