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Trop Owners Will File Court Application

ATLANTIC CITY-While not ruling out the property's eventual sale, Tropicana Entertainment wants operational control and more options.

By Eric Peterson | Updated on October 02, 2008

ATLANTIC CITY-Even as the Cordish Co. and court-appointed conservator Gary Stein work out details for a possible $700-million sale of the Tropicana Casino and Resort, and Cordish officials say they will spend another $100 million to upgrade the property, current owner Tropicana Entertainment is now formally taking steps to block that sale. Company officials have stated publicly that the sale price is too low.

The company yesterday informed the Delaware Bankruptcy Court, where parent Tropicana Entertainment’s Chapter 11 filing resides, that it will submit an application next week to the New Jersey Casino Control Commission for permission to assume operational control of the 2,100-room Trop, which currently operates under the aegis of Stein, a former New Jersey State Supreme Court Justice. Trop officials will tell the Court that, “it is a key component in a reorganization framework that contemplates a minimum acceptable sale price of $950 million in cash,” a spokesman tells GlobeSt.com.

In the filing, according to information released by the company, Tropicana officials will assert that if they were to assume control, they would petition to have the property integrated with Tropicana Entertainment’s other holdings and placed under the jurisdiction of the Bankruptcy Court. “It would give management the ability to tap financing and other resources to make needed capital improvements,” the spokesman says.

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