Previous Tropicana Casino Owner Blocks Resort Sale
Just when it seemed the mess that is the Tropicana Casino ownership situation was finally ending, the previous owner has returned to stir the pot. Tropicana Entertainment, led by CEO Scott Butera, is fighting hard to regain control of its Atlantic City casino.
Just days ago, trustee Gary Stein announced that a second series of bids had produced an acceptable bid from Cordish Company in the amount of $700 million. Stein had received regulators' permission to seek new bids after the first set was deemed too low.
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The case then proceeded to U.S. Bankruptcy Court, which was expected to handle the details of installing Cordish as the owner.
But representatives of Tropicana Entertainment filed at the bankruptcy court in Delaware, asking the company be granted a return of its license. The company contends the conditions which led to its forfeiture of its casino license have changed, most notably the exit of William Yung from the board of directors.
Now Tropicana Entertainment has received word the New Jersey Supreme Court will hear its case contesting the state Gaming Commission's decision not to renew the gambling license.
Any sale, to Cordish or otherwise, will be delayed while cases are presented and considered by the state Supreme Court. This process may hold up any changes in the current Tropicana management for up to a year.
