Firm reveals more details about Tropicana’s planned ownership structure
More information was revealed Wednesday about the planned ownership structure of the Tropicana on the Strip once the company emerges from bankruptcy.
Onex Corp., a Toronto-based private equity firm, acquired at a discount more than $200 million of the property's $440 million debt, the firm revealed during its first-quarter conference call.
"Onex has been working with Tropicana and other debt holders on a restructuring plan that provides for Onex' control of the Las Vegas property upon emergence from bankruptcy," the Wednesday filing said.
The firm, along with other holders of the debt, will receive 100 percent control of the 34-acre property, according to a plan confirmed by the U.S. Bankruptcy Court in Delaware.
The property will be run by Alex Yemenidjian, a former MGM Mirage executive who partnered with Onex founder, Gerry Schwartz, to acquire distressed casino properties.
Onex officials believe the new debt-free property "will be well positioned for a turnaround and able to withstand the current downturn in the Las Vegas market," the filing said.
The Tropicana, which opened in April 1957, has more than 1,850 hotel rooms, a 61,000-square-foot casino, five restaurants, a showroom and nearly 1,800 employees.
Tropicana is the first gaming investment by Onex, which has holdings in various industries including electronic manufacturing services, financial services, customer management services, managed health care and communications infrastructure.
The firm also manages real estate holdings in Maryland, California, Texas, Delaware, Florida, Pennsylvania, Virginia and New York.
