Hooters Resort Still at Risk of Ch. 11 Filing

LAS VEGAS-The owner of the 696-room Hooters hotel-casino, 155 East Tropicana LLC, here said Friday it produced another third quarter loss and remains at risk of having to file for bankruptcy protection. The company, which has defaulted on its $147-million of indebtedness, is currently seeking forbearance from its creditors while also considering its financial and strategic alternatives. Potential options include a recapitalization, refinancing, restructuring or reorganization of its obligations or a sale of some or all of its sole business, the hotel-casino. The property has been listed for sale through CB Richard Ellis.

“The company cannot be assured that it will be successful in completing a refinancing or restructuring. If the company is unable to do so, it may determine to seek protection under Chapter 11 of the US Bankruptcy Code,” the company said, as it has in each of its recent reports.

Located one-half block from the intersection of Tropicana Avenue and the Las Vegas Strip, Hooters Hotel-Casino was previously the Hotel San Remo. 155 East Tropicana LLC agreed to acquire Hotel San Remo in 2004 for approximately $72.5 million. It then spent approximately $63 million renovating, outfitting and re-opening the property in February 2006 as Hooters. It has had a tough time competing in the market ever since.