The Tropicana Las Vegas’ financial troubles are over—or so it seems. Earlier this year, Canadian private equity firm Onex Corp. purchased 58 percent of the Strip property’s debt. As of July 1, the resort is out of bankruptcy and will be managed by former MGM Mirage President Alex Yemenidjian.
Yemenidjian was granted approval to run the property by the Nevada Gaming Commission last month. He is now the resort’s chairman and CEO.
As part of the bankruptcy agreement, the Tropicana’s debts were cleared and the property emerged from bankruptcy with more than $10 million in cash. Onex has also promised to invest capital into the property to boost its reputation and revenue.
In a statement released by Onex, the firm said it intends to begin renovating the property this year. Remodeling will conclude in 2010. Changes to the hotel’s 1,850 rooms and casino floor are expected, and Onex said it plans to build a nightclub on the property.
The changes come after a long period of uncertainty. At the end of 2007, Tropicana Entertainment’s New Jersey property was stripped of its license, which sparked the bankruptcy proceedings. The two properties have been split and are no longer part of the same company, with billionaire gaming veteran Carl Icahn expected to take control of the New Jersey resort by the end of the year.