SALE 80% ! – Feel like running yet?
Alright, the phrase 'wee bit more effort' does not justify the legal hurdles that the seller,
buyer, and the court had to jump through. The Tropicana Casino and Resort actually lost its
license more than two years ago, way back in December 2007. It happened because the casino's
revenue started to decline steadily and the casino simply could not recover. There was a nasty
trail of mass layoffs and an overwhelming amount of complaints about unkempt rooms, bug infested
beds, and even overflowing toilets. Simply put, the whole casino was mismanaged, and thus its
license was revoked. Since then, the casino has been put under a state– appointed conservator,
Gary S. Stein. Carl Icahn, renowned money mogul and a corporate takeover specialist, decided to take
a bet on the crumbling casino and to practically turn it upside down. He would turn what was once
earning negative revenue into a money– making machine. However, before he could do that, he
still had a lot of legal hurdles to jump. Stein wanted to sell
the property to him but there were simply too many legal disputes and bankruptcy issues. Add those
problems to the economic crisis and you'll be giving yourself a lethal headache.
Legalities – a necessary evil
The first legal hurdle involved a long waiting period wherein Icahn had to wait for regulatory approvals
in all of the states where Tropicana Entertainment operates all of its casinos. Finally, after the long wait,
the parties went in for a commission meeting. Icahn himself was absent at the meeting, but he was able to buy
the whole casino for $200 million dollars, 80% lesser than what it would have cost had the recession not
happened. Then, the parties went through a hearing that lasted for a whole day and the legalities discussed
exhaustively. Finally, at the end, it was decided that the casino would indeed be sold to Icahn in a
4– 0 vote. Things are looking good for Tropicana Casino and Resort now that Icahn holds the reins and
the experts are already making a forecast about an increase in revenue and profits in the next three years,
recession or no.
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