Hooters Casino Hotel: Not all classes of claims voted in favor of plan

By Lisa Kerner

Charlotte, N.C., Feb. 28 - 155 East Tropicana, LLC reported the results of the voting on the company's first amended joint plan of reorganization in a Tuesday filing with the U.S. Bankruptcy Court for the District of Nevada.

The specific votes by class were as follows:

• One, or 100%, or $15.54 million in dollar amount of the class 3 claims voted to accept the plan;

• One, or 100%, or $44.46 million in dollar amount of the class 4 claims voted to accept the plan;

• One, or 100%, or $117.94 million in dollar amount of the class 7 claims voted to accept the plan.

Voting to reject the plan were

• One, or 100%, or $5.42 million in dollar amount of the class 8 claims (allowed East West preferred returned claims); and

• One, or 100%, or $3.41 million in dollar amount of the class 9 claims (allowed subordinated license fee claims).

A combined hearing for final approval of the disclosure statement and confirmation of the plan of reorganization is scheduled for March 2.

As previously reported, the company plans to sell its encumbered assets, mainly comprising Hooters Casino Hotel in Las Vegas.

Treatment of creditors

Under the proposed plan, treatment of creditors will include the following:

• Holders of administrative claims, priority claims, general unsecured claims and other secured claims will be paid in full in cash;

• Credit facility claims will be assumed if there is a successful credit bid. Otherwise, these claims will be paid in full from sale proceeds;

• The secured portion of lender Canpartners Realty Holding Co. IV LLC's interest in senior secured note claims will be paid from sale proceeds applicable to the collateral for a senior secured note facility after payment of credit facility claims or will receive the collateral under the senior secured note facility in the event of a successful credit bid;

• Minority noteholders' principal and interest will be paid in full in cash for their interest in the senior secured note claims;

• For the unsecured portion of its interest in senior secured note claims, Canpartners will receive a payment from any cash remaining after creditors in classes one through six are paid;

• Holders of East West Preferred return claims and subordinated license fee claims will receive a payment from any cash remaining after creditors in classes one through seven are paid; and

• Holders of company equity interests will retain those interests until all actions required of the reorganized company have been completed.

After that, the company will be dissolved, and all equity interests will be canceled and extinguished.

155 East Tropicana, owner of the Hooters Casino Hotel in Las Vegas, filed for bankruptcy on Aug. 1. The Chapter 11 case number is 11-22216.

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