Tropicana Entertainment CEO Yung Steps Down

Yung relinquished his job as CEO of Tropicana Entertainment LLC this week following demands for his removal from creditors of the bankrupt business.

William Yung, who boldly tried to expand his minor casino holdings into an empire including major properties in Atlantic City and the Las Vegas Strip, was pushed out of control of his troubled company this week. Yung relinquished his job as CEO of Tropicana Entertainment LLC this week following demands for his removal from creditors of the bankrupt business.

Yung retained ownership and control of parent company Columbia-Sussex, which is not part of the bankruptcy proceedings. However, even though he kept a seat on Tropicana's board of directors, he has lost say-so over the future direction of the company.

Scott Butera, recently hired as Tropicana President, was given the CEO position as well. Butera's reputation as a leader capable of quick turnarounds in the casino industry brought approval of his hiring by lenders to Tropicana, but fear that Yung could reverse Butera's decisions or even fire him led to the demand that Yung step aside.

Silver Point Capital had been joined by other creditors in filing a demand in U.S. Bankruptcy Court that Yung be removed from all decision-making positions, and bondholders had also clamored for his resignation.

Yung's triumphant acquisition of the Tropicana properties quickly became a quagmire from which he could not extricate the business. Overextension to meet the $2 billion price tag led to layoffs and dramatic drops in quality of service, particularly at the Tropicana Casino in Atlantic City.

This was rapidly followed by union troubles and an investigation by the New Jersey Casino Control Commission, which resulted in the drastic move to take the casino's license away and force a sale of the resort hotel.

Without the Atlantic City location, Tropicana Entertainment faced calls against its outstanding loans. Attempts to unload other troubled properties, like Casino Aztar in Indiana, did not quell the rising tide. Bankruptcy soon became the only viable option.

Butera is said to be looking to move company headquarters away from Kentucky, where Columbia Sussex is based, to Las Vegas, and to restructure the outstanding $2.3 billion debt.