Tropicana Entertainment Plans of Reorganization Filed

Yesterday, two plans of reorganization were filed in the Tropicana Entertainment, LLC bankruptcy cases.  No accompanying disclosure statements were filed.  The plans split the debtors into two groups – the LandCo debtors (Joint Plan of Reorganization of Tropicana Las Vegas Holdings, LLC and Certain of its Debtor Affiliates – click here to view a copy) and the OpCo debtors (Joint Plan of Reorganization of Tropicana Entertainment, LLC and Certain of its Debtor Affiliates – click here to view a copy):

• LandCo Debtors: Adamar of Nevada; Hotel Ramada of Nevada; Tropicana Development Company, LLC; Tropicana Enterprises; Tropicana Las Vegas Holdings, LLC; Tropicana Las Vegas Resort and Casino, LLC; and Tropicana Real Estate Company, LLC
• OpCo Debtors: Adamar Garage Corporation; Argosy of Louisiana, Inc.; Atlantic-Deauville Inc.; Aztar Corporation; Aztar Development Corporation; Aztar Indiana Gaming Company, LLC; Aztar Indiana Gaming Corporation; Aztar Missouri Gaming Corporation; Aztar Riverboat Holding Company, LLC; Catfish Queen Partnership in Commendam; Centroplex Centre Convention Hotel, L.L.C.; Columbia Properties Laughlin, LLC; Columbia Properties Tahoe, LLC; Columbia Properties Vicksburg, LLC; CP Baton Rouge Casino, L.L.C.; CP Laughlin Realty, LLC; Jazz Enterprises, Inc.; JMBS Casino LLC; Ramada New Jersey Holdings Corporation; Ramada New Jersey, Inc.; St. Louis Riverboat Entertainment, Inc.; Tahoe Horizon, LLC; Tropicana Entertainment Holdings, LLC; Tropicana Entertainment Intermediate Holdings, LLC (9214); Tropicana Entertainment, LLC; Tropicana Express, Inc.; and Tropicana Finance Corp.

LandCo Plan of Reorganization

Claims against and interests in the LandCo debtors are categorized into ten classes, five of which are entitled to vote on the plan:

• Unimpaired Classes
  • Other Priority Claims
  • Other Secured Claims
• Impaired Classes Entitled to Vote
  • LandCo Credit Facility Claims
  • LandCo General Unsecured Claims
  • LandCo Credit Facility Deficiency Claims
  • Insider Claims
  • Unsecured Convenience Class Claims
• Impaired Classes Not Entitled to Vote
  • Intercompany Claims
  • Yung Interests
  • Intercompany Interests

Under the terms of the proposed plan, holders of allowed LandCo Credit Facility Claims would receive their pro rata share of reorganized LandCo common stock.  Holders of allowed LandCo General Unsecured Claims and Credit Facility Deficiency Claims would receive their pro rate share of the proceeds of a litigation trust.  Holders of allowed Unsecured Convenience Class Claims would receive 3% of the allowed amount of the claim in cash.

OpCo Plan of Reorganization

Claims against and interests in the OpCo debtors are categorized into 13 classes, six of which are entitled to vote on the plan:

• Unimpaired Classes
  • Other Priority Claims
  • Other Secured Claims
• Impaired Classes Entitled to Vote
  • OpCo Credit Facility Claims
  • OpCo General Unsecured Claims
  • OpCo Noteholder Unsecured Claims
  • OpCo Credit Facility Deficiency Claims
  • Insider Claims
  • Unsecured Convenience Class Claims
• Impaired Classes Not Entitled to Vote
  • LandCo Stock Pledge Claims
  • Intercompany Claims
  • Yung Interests
  • JMBS Interests
  • Intercompany Interests

Under the terms of the proposed plan, holders of allowed OpCo Credit Facility Claims would receive their pro rata share of (1) reorganized OpCo common stock; (2) the OpCo payment (as defined in the plan); (3) the reorganized OpCo notes; and (4) the Tropicana Atlantic City sale proceeds (if any).  Holders of allowed OpCo General Unsecured Claims would receive their pro rate share of (1) reorganized OpCo warrants and (2) the litigation trust proceeds.  Holders of allowed OpCo Noteholder Unsecured Claims would receive their pro rata share of (1) subscription rights (to the extent they are an “eligible holder”); (2) the litigation trust proceeds; and (3) reorganized OpCo warrants.  Holders of allowed OpCo Credit Facility Deficiency Claims would receive their pro rata share of the litigation trust proceeds.  Holders of Insider Claims would receive their pro rata share of the “Insider Claim Distribution” (as defined in the plan).  Holders of allowed Unsecured Convenience Class Claims would receive 3% of the allowed amount of the claim in cash.

UPDATE: Proposed disclosure statements for both plans have now been filed.  Find more details about the disclosure statements here.

Download copies of both plans, as well as every other pleading in the Tropicana Entertainment bankruptcy, using netDockets.  Sign up now for a free trial account.

EZ Lube LLC Files Schedules of Assets and Liabilities

EZ Lube LLC filed its Schedules of Assets and Liabilities and its Statement of Financial Affairs on Friday.  The Schedules and Statement describe the company’s assets and liabilities in significant detail and include a list of all of the company’s known creditors (including disputed claims).

Download a copy of EZ Lube’s Schedules and Statement here.  Try our system completely free.

Circuit City Looks to Sell All of its Assets

Today, a motion was docketed in the bankruptcy court seeking approval of procedures for Circuit City Stores, Inc. to solicit bids for either (1) the sale of any or all of its assets or (2) financing alternatives.  The motion also seeks approval for Circuit City to potentially enter into an agreement with a “stalking horse” bidder and provide any such stalking horse bidder with a termination fee of up to 2.0% of the cash purchase price set forth in the stalking horse agreement.

Bids would be due under the procedures by January 10, 2009 at 5:00 p.m. (Eastern).  If competing bids are received, the motion seeks to have auctions on January 13, 2009 (continuing to the 14th if necessary) and a sale hearing on January 16, 2009.  The auctions would consist of four related auctions: (1) a going-concern auction at 10:00 a.m. (EST); (2) a store closing auction at 1:00 p.m. (EST) or following the conclusion of the first auction; (3) a miscellaneous asset auction at 4:00 p.m. (EST) or following the store closing auction; and (4) a final auction to commence following the conclusion of the first three auctions and after consultation with counsel to Circuit City’s Creditors’ Committee and lenders.  Only the successful bidders from the initial three auctions would be entitled to participate in the final auction.

The sale procedures and the timing thereof are required by the terms of Circuit City’s debtor-in-possession financing facility.  The motion reports that, since the bankruptcy filing (and, indeed, for some time prior to filing for bankruptcy), Circuit City’s investment bankers and financial advisors – namely, Rothschild, Inc. – have been actively pursuing a sale or an alternative transaction.  The motion further reports that Circuit City has “engaged in significant discussions, meetings, and negotiations with two highly motivated and interested parties” regarding a going-concern sale or obtaining additional financing to facilitate a stand-alone reorganization.  Neither party is identified by name in the motion, but news reports have suggested that one party may be Mexican retail and media entrepreneur Ricardo Salinas Pliego, who has built up a stake of at least 28 percent in the company.

UPDATE: The first day of Circuit City’s auction process has concluded with no clear resolution but discussions continue with bidders.  More details are available here.

UPDATE 2: A further update on the Circuit City sale process (as of the evening of January 15th) providing details on the apparent remaining bidders can be found here.

UPDATE 3: Circuit City announced today (January 16th) that it intends to liquidate all of its assets and go out of business.  More details are available here.

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Merisant Worldwide, Maker of Equal Sweetner, Files for Bankruptcy

Earlier today, Merisant Worldwide, Inc. and five subsidiaries filed for bankruptcy protection in the United States District Court for the District of Delaware.  Merisant, which is headquartered in Chicago and generated 2007 revenues of over $290 million (however, sales have fallen each year since 2003 when Merisant generated revenues of over $350 million), is a leading manufacturer of low-calorie tabletop sweetners, including the Equal and Canderel brands, sold in over 90 countries.

The company’s history traces back over 25 years when it began as a division of G.D. Searle & Co.  Later, it was a division of Monsanto Company.  Merisant was formed in 2000 by an investor group led by an affiliate of Pegasus Capital Advisors, L.P. to acquire Monsanto’s tabletop sweetner business.  However, Merisant has seen market share decline in recent years amid competition from rival sweeteners, including Splenda. Today’s bankruptcy filing comes less than a month after federal regulators cleared the way for Coca-Cola Co. and PepsiCo Inc. to begin using sweeteners derived from the stevia plant, which are natural and calorie-free.

The beverage makers have desired a natural alternative to chemical sweeteners such as Equal and Splenda  to boost soft drink sales in the U.S.  Following the FDA approvals, Pepsi moved to launch drinks with PureVia, a stevia-based sweetener it developed with Merisant.  Coca-Cola has developed its own stevia-based sweetener, Truvia, with Cargill Inc.

UPDATE: Merisant has filed various “first day” motions and applications seeking relief from the bankruptcy court to allow the company to continue operating in the ordinary course.  Details of these motions and applications (and access to copies of the documents) can be found here.

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