According to a report, the bondholder group -- owed more than $960 million through bonds issued in order to finance the January 2007 buyout of Aztar Corp. -- filed a lawsuit Monday with the Delaware Chancery Court against Tropicana. The suit accuses Tropicana and its owner, William Yung III, of "gross mismanagement" and carrying out actions that have caused the company's value to plunge (see The Deal newsweekly: A bet too far). Through the suit, the bondholders hope to halt the potential sales of Tropicana's casinos in Las Vegas, Vicksburg, Miss., and Evansville, Ind. Tropicana defaulted on the bondholders' debt when the New Jersey Casino Control Commission stripped the company Dec. 12 of its gaming license and appointed Gary Stein as a trustee in charge of selling its prized asset, the Tropicana Casino and Resort in Atlantic City. The bondholders have asked the Chancery Court to appoint a receiver for Tropicana, the report said. - Ben Fidler
See story from the Philadelphia Inquirer
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The troubles facing embattled casino operator Tropicana Entertainment LLC increased as reports indicate that the company has been sued by a group of bondholders. 
