Bondholders take the squeeze off Tropicana

Tropicana Entertainment LLC gained a little breathing room Wednesday by reaching a forbearance agreement with the holders of $960 million in bonds.

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According to an 8-K filed Wednesday with the Securities and Exchange Commission, Tropicana and the bondholders have signed the deal to explore a consensual restructuring of the bonds. Under the forbearance deal, Tropicana will pay $2 million for an indemnity claim, and the noteholders will agree not to exercise a default on the debt, which they had originally had a right to do on April 20. The forbearance will remain in effect until May 15.

Tropicana, which owns the Tropicana Casino and Resort in Atlantic City, warned that a consensual deal may involve a bankruptcy filing, and also that it may be forced to file if the noteholders accelerate their debt. - Ben Fidler

See earlier story from TheDeal.com
See story about appeal from TheDeal.com
See story about Feb. 29 ruling from TheDeal.com
See The Deal newsweekly: A bet too far
See TheDeal.com: Colony rolls dice on Tropicana AC
See TheDeal.com: AC casino survives storm
See Dealscape: Bear Stearns to oversee Tropicana AC auction
See Dealscape: Columbia Sussex forced to sell N.J. casino

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