Former Tropicana Operator Sells Another Casino
The company that was forced to sell the Tropicana Hotel and Casino in Atlantic City appears to have found a buyerfor another of its casinos. Columbia Sussex, the corporation that seems to run its business by acquisitions followed by layoffs and cutbacks, is planing to sell its Evansville, Indiana casino to Eldorado Resorts, LLC.
The Casino Aztar in Evansville has been troubled by much of the same difficulties that faced the Tropicana: labor layoffs, pennypinching management, and poor service, resulting in threats against the license and potential government intervention.
The loss of the Atlantic City casino also caused Columbia Sussex's financiers to recall its loans, resulting in a fire sale of some properties to stave off bankruptcy.
Thus, the $245 million to be received from Eldorado eases pressure on Columbia Sussex from several directions. The problems with the city of Evansville are gone, and the cash helps make payments against the mountain of debt incurred by the company.
The sale is contingent upon aproval by the Indiana Gaming Commission, which must license Eldorado before the transaction can be completed.
Columbia Sussex is also under contract to sell its Horizon Vicksburg Casino in Mississippi.
