{"id":1003,"date":"2009-01-15T14:01:00","date_gmt":"2009-01-15T22:01:00","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/blogs\/dmckee\/index.cfm\/2009\/1\/15\/376-million-for-the-Trop"},"modified":"2009-01-15T14:01:00","modified_gmt":"2009-01-15T22:01:00","slug":"376-million-for-the-trop","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/376-million-for-the-trop\/","title":{"rendered":"$376 million for the Trop?"},"content":{"rendered":"

\"\" Secured creditors of Tropicana Entertainment<\/strong> are being asked to take haircuts of 14-27%, as details continue to emerge of the company's reorganization proposal<\/a>. The bigger shave would go to debtors of the company's 10 non-Vegas properties, the value of whose stake would be written down to $915 million.<\/p>\n

Those who are owed money by the Tropicana Las Vegas<\/strong> (which would be spun off into a stand-alone TropEnt subsidiary) would reduce their claims to, if my calculations are correct, $376 million and change. Which means that, if CEO Scott Butera<\/strong>'s #1 priority is to balance the ledger, a Strip property that stock and real estate analysts were valuing in the $1 billion-$1.2 billion range back in '06 might soon be had for less than $400 million — or just over $11 million an acre.* How times change.<\/p>\n

(* — Obviously this does not take into as-though-redeveloped valuations, ongoing operating costs, EBITDA multiples, etc. But if MGM Mirage<\/strong> really is<\/em> having trouble getting $1.2 billion for The Mirage<\/strong> in the present economy, then asking a third as much for the not-sought-after, rehabilitation-needing Trop seems quite plausible.)<\/p>\n

Subordinated debtors, though, are being asked to take it in the shorts<\/a>: Settle for less than $20 million of nearly $1 billion in debt. TropEnt's former CEO, William J. Yung III<\/strong>, may be going down but he continues to inflict collateral damage along the way.<\/p>\n","protected":false},"excerpt":{"rendered":"

Secured creditors of Tropicana Entertainment are being asked to take haircuts of 14-27%, as details continue to emerge of the company's reorganization proposal. The bigger shave would go to debtors of the company's 10 non-Vegas properties, the value of whose … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15,14,11,21,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/1003"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=1003"}],"version-history":[{"count":0,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/1003\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=1003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=1003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=1003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}