Tropicana Entertainment files for Chapter 11

May 5, 2008 7:23:48 PM PDT
A decision by New Jersey regulators to wrest control of the Atlantic City Tropicana from its owners has led the company to bankruptcy court. Tropicana Entertainment LLC filed for Chapter 11 bankruptcy protection in Delaware tonight.

But it will continue operating its remaining properties, including the famed Tropicana Casino and Resort in Las Vegas. And it will keep current staffing levels.

The filing was buffeted by a chain of events that began Dec. 12th, when the state Casino Control Commission stripped the Tropicana in Atlantic City of its casino license.

The panel determined that the company was incapable of running the "first-class operation" required by state law.

That touched off a funding crisis that the company desperately struggled to fend off until tonight's filing.