Tropicana Entertainment, the owner of the Belle of Baton Rouge casino, said Tuesday it could emerge from Chapter 11 bankruptcy protection this spring. The company began sending out ballots to creditors on Tuesday on a restructuring plan that will wipe out the equity interest of former owner William J. Yung III.
Under the plan, holders of secured debt will have their bonds converted into common stock and general unsecured debt-holders will be given warrants, interests in a litigation trust and, for certain creditors, cash. Creditors with voting rights have until April 17 to submit their ballots. Confirmation hearings by a bankruptcy court are scheduled to begin April 27.
“Tropicana hopes to emerge from Chapter 11 soon thereafter,” the company said in a statement. An affiliate of Yung’s hotel and casino company, Columbia Sussex Corp., acquired Tropicana in January 2007 through the $2.1 billion takeover of parent Aztar Corp.
Besides the Belle, Tropicana owns four more riverboat casinos in Mississippi and Indiana. The company also owns five casinos in Nevada, including the Tropicana on the Las Vegas Strip. The Tropicana in Atlantic City, N.J., which was once part of the group but taken over by a state-appointed conservator since December 2007, is now in a bankruptcy court auction.
