Tropicana DIP facility lenders agree to waive EBITDA covenant default

By Caroline Salls

Pittsburgh, March 4 - Tropicana Entertainment, LLC's debtor-in-possession facility lenders have agreed to waive an EBITDA covenant default to ensure the company's compliance with the terms of the DIP agreement , according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said its consolidated EBITDA figure for the three months ended on Jan. 31 was below the amount allowed under the DIP agreement because of the current unprecedented economic crisis, "which has significantly depressed consumer demand for casino gaming-related travel and entertainment."

In addition to the waiver, the proposed DIP amendments will adjust the EBITDA covenant to reflect Tropicana's current projections and include EBITDA generated from its Casino Aztar Evansville operations.

The amended DIP agreement gives the company until July 21 to secure gaming authority approval for Casino Aztar Evansville.

The company will pay a $750,000 amendment fee.

A hearing is scheduled for March 18.

Tropicana, a Fort Mitchell, Ky.-based gaming entertainment provider, filed for bankruptcy on May 5, 2008. The Chapter 11 case number is 08-10856.

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