Millions to flow into South Shore casinos
November 14, 2008
SOUTH LAKE Millions of dollars could be heading to both MontBleu Resort Casino andamp; Spa and Horizon Casino Resort for capital improvements under a preliminary business plan that Tropicana Entertainment LLC posted to its Web site Monday.In May, Tropicana filed for Chapter 11 a way for a company to stay in business while a bankruptcy court oversees the companys reorganization to pay off its debt and contractual agreements.The preliminary business report is meant to serve as a plan for the companys reorganization. Tropicana Entertainment owns MontBleu and Horizon in Stateline.The plan calls for allocating $4.5 million to MontBleu each year for capital improvements, and $4.1 million to Horizon over the next two years. After 2010, the plan stops funding the Horizons capital expenditures.Steve Loyd, MontBleu and Horizon general manager, said hell receive more details on the plan in the next few weeks.According to an Oct. 10 Tribune article, the Horizons lease will end on March 31, 2011. Park Cattle Co. owns the land, and if Tropicana doesnt renew the Horizon lease by April 2, 2011, Park Cattle could take over the Horizon and operate it for two years.Tropicana CEO Scott C. Butera said the plan addresses all Tropicana properties without regard to the status of operational control or potential property sales. The preliminary plan estimates $64 million in capital expenditures from internally generated cash in the company, but states that projections could differ from the actual results.Given the uncertain state of capital markets, our plan is focused on improvements that can be internally generated without reliance on outside funds, Butera said.In the plan, the company estimates a 6 percent market growth on the South Shore for 2009.