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 In perhaps its most critical roll of the dice, Tropicana Entertainment LLC
is gambling it can beat the state regulatory body that oversees it. The struggling casino owner is betting the house on an appeal it filed Tuesday against the New Jersey Casino Control Commission's Dec. 12 decision
to strip Tropicana's Atlantic City Tropicana Resort Casino of its gaming
license.
Wracked by a Friday ruling by Delaware Court of Chancery Judge John Nobel that might push Tropicana into bankruptcy, Tropicana then appealed the commission's ruling to pull the casino's bread-and-butter gaming license in a 69-page document that it filed Tuesday with the Appellate Division of the Superior Court of New Jersey. Tropicana accused the commission of "abuse of regulatory discretion." What makes Tropicana's appeal more desperate than most is that the commission has actually appointed a conservator to shop Tropicana's AC casino assets. And the clock's ticking. Nobel ruled last week that Tropicana has just a month to make good on its default of $960 million in 9.625% senior subordinated notes. That's a tall order in the best of times. Ask Donald Trump, who's had his own woes with noteholders involving his AC assets. These days, the much tighter credit markets argue against a financing fix within a month. That might mean a bankruptcy filing is Tropicana's last resort. But wouldn't that be only more of an indictment of Tropicana's dicey situation, which the state regulators are entrusted to remedy? - Terry Brennan See story about appeal from TheDeal.com Categories Deal Video
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