Official Creditors Committee Supports New Management's Framework for Integration of Atlantic City Casino in Reorganized Tropicana

LAS VEGAS--(BUSINESS WIRE)--Tropicana Entertainment, LLC told the Delaware Bankruptcy Court today that it intends to submit an application next week to the New Jersey Casino Control Commission for permission to assume operational control over its Atlantic City Casino & Resort. The application is a key component in a reorganization framework that contemplates a minimum acceptable sale price for the casino of $950 million in cash. The framework is supported by the official creditors committee in Tropicana’s Chapter 11 cases.

“Bob brings our organization precisely the kind of operating know-how that we need to sharpen our brand offerings and to guide the development of the management and control systems we need to achieve operating excellence”

In the Delaware filing, Tropicana said that if it were to assume control of the casino it would petition to have the property integrated with its other holdings and placed under the jurisdiction of the Bankruptcy Court. That move would give Tropicana’s new management the ability to tap financing and other resources to make needed capital improvements to the oceanfront gaming facility.

“Our creditors, our employees and our neighbors in Atlantic City cannot afford to have this marquee Atlantic City property purchased at a severely depressed price,” said Tropicana CEO Scott C. Butera.

“Instead of engaging in a forced sale in the midst of an unprecedented financial crisis,” he said, “we want to reinvigorate the management of the property, make significant investments in needed upgrades, and assess the options. It just seems like the prudent thing to do for everyone involved.”

The Court filing provided a timeline for addressing concerns of regulators, creditors, taxpayers and other stakeholders. Tropicana said that within 45 days of regaining control, it would submit a detailed work plan for upgrading casino operations and performance.

No later than 60 days after that plan is submitted, the company said it would deliver its assessment on how to achieve the highest value for the casino. If the best option is a sale, then Tropicana pledged to conduct an auction and would contemplate asking the bankruptcy court to authorize a sale of the casino at a price of at least $950 million, subject to Tropicana’s exercise of its fiduciary duty to maximize value for creditors. On the other hand, if the best value alternative is to defer the sale option and continue operating the casino, then Tropicana will include the property in its Chapter 11 reorganization plan.

Tropicana’s reorganization plan will reconfirm the company’s prior termination of all agreements and relationships with William J. Yung and any and all of his business entities. The emergent Tropicana will have entirely new ownership and expects to have the necessary capital to support the company’s longer range business plan. Tropicana also says that its plan will provide that Mr. Yung’s existing ownership interests be eliminated such that he will have no ownership role, involvement or any other interest whatsoever in the reorganized company.

The new management team is headed by CEO Scott C. Butera. Since taking over he has brought in top level casino executives to help revitalize the Tropicana brand and bring a new level of management excitement to Atlantic City.

Robert G. Yee, a veteran gaming executive, leads Butera’s operating team and oversees casino operations. He has more than 30 years of gaming experience, nearly half of it gained at Atlantic City-based companies. He is the former President of Paris/Bally’s Hotels & Casino Resorts in Las Vegas, where he was responsible for gaming, hotel, food and beverage, retail, entertainment and marketing.

“Bob brings our organization precisely the kind of operating know-how that we need to sharpen our brand offerings and to guide the development of the management and control systems we need to achieve operating excellence,” Butera said. “What impresses us most about him is his deep working knowledge of the casino business and his hands-on style.”

From 1996-2003, Yee held senior management positions with Casino Windsor (CEO) and Casino Rama (CEO) in Canada. From 1981 to 1995, he was in casino operations management with Playboy, Pratt, and Trump International, all in Atlantic City, and with Carnival Hotels and Casinos in Miami and Nassau.

Yee joins a group of recently named company officers who have an average experience level in excess of 20 years. Bob Kocienski, former head of finance for the Mirage and Golden Nugget in Las Vegas, heads the finance team. Marc Rubinstein, the new chief legal officer, served in similar roles for Wynn and Caesars Palace. Cass Palmer, formerly with Boyd Gaming, now leads the company’s human resources group.

The Tropicana management team also includes newly appointed and highly experienced vice presidents: Charles H. Barry is the new head of security and surveillance; Joseph M. Long is the company’s chief information officer; and Elizabeth Guth is the new head of risk management.

About Tropicana Entertainment, LLC

Tropicana Entertainment, LLC, an indirect subsidiary of Tropicana Casinos and Resorts, is one of the largest privately held gaming entertainment providers in the United States. The company operates 540,000 square feet of casino space with 15,000 slot machine positions. With more than 11,000 employees and 8,300 hotel rooms at its properties, it produces in excess of $1.2 billion annual revenue. More information is available at www.tropicanacasinos.com. None of the information contained on the company's website shall be deemed incorporated by reference or otherwise included herein.