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Tropicana may face auction block

"Normally, bankruptcy carries the stigma of failure. Not so in the casino industry. It has been used with success by gaming operators in the past, and now it appears Tropicana is heading in that direction to complete the casino's tortuously slow sale.

"Gary S. Stein, the conservator overseeing the sale, says a bankruptcy auction is the best way to pump up bids and overcome a host of legal and financial entanglements that have hindered efforts to find a buyer.

"...Stein is seeking New Jersey Casino Control Commission permission to scrap the existing bids for Tropicana and extend the sale for an additional 120 days beyond Monday's deadline. His plan calls for lining up approval from Tropicana's creditors, bondholders and former owner to take the casino on a quick trip through bankruptcy court under what is known as a Section 363 sale.

"...Stein, however, has been wrong in his estimates so far. When Tropicana's sale started in December, he originally thought he would have a buyer by April. When it became clear that deadline wouldn't be met, the commission extended the sale 120 days to June 9. Now with a sale nowhere in sight, Stein wants another 120 days..."

copyrighted material written for and appeared exclusively in The Press of Atlantic City

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