Hooters Casino Hotel will seek financial restructuring through a Chapter 11 bankruptcy petition, the company revealed. The company is not affiliated to Hooters of America, which is majority-owned by HIG Capital, peHUB reported.
155 East Tropicana LLC Seeks Financial Structuring through Chapter 11 Bankruptcy Petition
Hotel owner is unable to reach agreement with current debt holders following months of negotiations
Hotel and Casino operations will be unaffected by the filing
LAS VEGAS–(BUSINESS WIRE)–155 East Tropicana LLC, owner of the Hooters Casino Hotel (the “Company”) announced today that it will seek a financial restructuring of its current debt through a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code which was filed today with the United States Bankruptcy Court for the District of Nevada.
“This action in no way affects the operation of the more than 430 Hooters Restaurants in 44 states and 27 countries which are owned or franchised by Atlanta based Hooters of America, LLC.”
The Company had been in extensive negotiations with its primary bondholder, which purchased approximately 98% of the company’s debt at a substantial discount. The Company no longer believes a pre-negotiated restructuring is possible, and has therefore elected to commence the Chapter 11 process immediately. All hotel and casino operations will continue to operate as usual during the Chapter 11 process, including with respect to employees, customers and vendors.
The Company stated: “We regret that we have been unable to reach an acceptable settlement with our new bondholder. 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 business, while also continuing to operate with no disruption to our customers, employees and vendors. Absent the significant debt payments we’re currently obligated to pay, Hooters Casino Hotel is a profitable, successful business and we look forward to completing this process to return our entire focus to running our business and serving our guests.”
The Company also stated: “This action in no way affects the operation of the more than 430 Hooters Restaurants in 44 states and 27 countries which are owned or franchised by Atlanta based Hooters of America, LLC.”
The filing is planned in order to protect the Hotel Casino’s assets and ongoing hotel services to its guests. Chapter 11 of the U.S. Bankruptcy Code allows a company to continue operating its business and managing its assets in the ordinary course of business. The U.S. Congress enacted Chapter 11 to encourage and enable a debtor business to continue to operate as a going concern, to preserve jobs and to maximize the recovery for all stakeholders.
ABOUT HOOTERS CASINO HOTEL
The world’s first Hooters Casino Hotel features 696 rooms and suites and is conveniently located one block from the Las Vegas Strip and across Tropicana Blvd. from MGM Grand. The property offers a mix of casual dining, entertainment and nightlife attractions, including eight restaurants and bars. The 30,000-square-foot “Hooters”-themed casino floor offers approximately 590 slot and video poker machines and 20 table games. Hooters Casino Hotel is owned by 155 East Tropicana, LLC. www.hooterscasinohotel.com.
This press release contains forward-looking information. Any forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements as to a restructuring plan or new capital structure, may be significantly and materially impacted by certain risks and uncertainties. These risks and uncertainties include, but are not limited to, failure to obtain necessary bankruptcy court or gaming authority approvals, non-acceptance of the plan by stakeholders in the Company, delays in the confirmation or effective date of the plan due to factors beyond the Company’s control, failure to consummate a restructuring plan, failure to a restructuring plan objectives or to execute the restructuring plan, competition, and other economic factors. Any forward looking information in or referred to by this press release is current only as of the date of publication, and the Company disclaims any obligation to update this information, except as required by law.