Tropicana Files For Bankruptcy As Casino Market Crumbles
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Tropicana Entertainment LLC has owned some of the most popular casinos in the world. They have run into financial trouble in these slow economic times, and on Monday, the company filed for bankruptcy.
The group missed an interest payment to Credit Suisse Group. The payment was due in response to a $1.32 billion loan that was given to Tropicana. Once the payment was missed, economic pressure grew on the company.
The casino industry, which many thought would be exempt from the economic instability of the country, has seen their revenue numbers fall fast. Many within the industry are worried about the recent trends which suggest that this slow time might not be an aberration.
Las Vegas, which has been a city that has survived economic trouble in the United States before, is struggling to stay afloat. Projects that were scheduled have been canceled, and revenue is just not reaching expectations.
The bankruptcy filing for Tropicana comes as protection against creditors. The company believes the filing will help regain economic stability. “I really view this as a positive step,” said Scott Butera, President of Tropicana Entertainment LLC. He went on to say that Tropicana is, “cash-flow positive and in very constructive dialogue with our lending groups.”
Columbia Sussex Corp., which is also owned by Tropicana owner William Yung III, will not be part of the bankruptcy proceedings.
Jamaican Church Leaders Battling Proposed Casinos
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Church leaders in Jamaica see the writing on the wall for the islands first casinos. They do not like the plan, and they have joined together to voice their displeasure with the proposal.
Prime Minister Bruce Golding has unveiled a plan to legislators that would bring Jamaica their first gambling casinos. The casinos would help to boost revenue on the island.
Church leaders seem appalled that the Prime Minister would go to these lengths to help raise revenue. They have called on legislators to reject the plan from Golding.
“It seems incredible that those charged with the administration of the country’s affairs should even think of introducing an activity which has shown to produce an increase in crime, violence, and moral degradation,” said Reverend Henley Bernard, from the United Church in Jamaica and the Cayman Islands.
Church leaders have already blocked several attempts to allow casino gambling in Jamaica. They vow that this time will be no different, and that legislators should consider all options other than legalizing casinos.
Golding is looking to further the current system. Slot machines do exist in hotels already. Under the new plan, developers would have to guarantee a $1.5 billion investment. That would include the casino, and also a hotel joining the casino with a minimum of 1,000 rooms.