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Best of Chris Sieroty

Gaming Guru

Chris Sieroty
 

Owner of Vegas casino files for bankruptcy

2 August 2011

LAS VEGAS, Nevada -- The owner of the Hooters Casino Hotel on Monday filed for Chapter 11 bankruptcy, as the company seeks to reorganize millions of dollars of debt.

The company, 155 East Tropicana LLC, said in a statement it filed bankruptcy after negotiations over a pre-negotiated restructuring with its largest bondholder collapsed.

In its initial filing in U.S. Bankruptcy Court for Nevada listed assets of $10 million to $50 million, with liabilities of more than $100 million.

The company said the bankruptcy filing in "no way affects the operation" of Hooters restaurants, which are owned or franchised by Hooters of America LLC in Atlanta.

"We regret that we have been unable to reach an acceptable settlement with our new bondholder," the company said. "We are confident that an orderly and transparent Chapter 11 process will provide the company with the opportunity to properly restructure its balance sheet and emerge as a stronger company."

The resort on Tropicana Avenue listed U.S. Bank as its largest creditor at $162.2 million.

Other unsecured creditors include Sysco Food Services at $139,154 and International Game Technology, with claims of $125,896.

A sister company, 155 East Tropicana Finance Corp., also filed Chapter 11 reorganization.