Tropicana Files Disclosure Statements and Plans of Reorganization

Tropicana's senior secured creditors to receive majority ownership stake

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. January 13, 2009

JANUARY 13, 2009 - In Disclosure Statements filed in federal bankruptcy court in Delaware, Tropicana Entertainment, LLC has provided information regarding its Plans of Reorganization. Under the Plans, the company's balance sheet would be substantially deleveraged, leaving reorganized Tropicana with a serviceable amount of debt and positive cash flow to ensure that the company can successfully work its way through the economic downturn and into a more stable, growth-oriented future.

If confirmed, the Plans would cancel the company's long-term indebtedness and convert a substantial portion of the debt into ownership stakes in two emergent entities: one referred to in the plan as OpCo that is comprised of 10 casinos and resorts in the Tropicana portfolio, including the properties in Atlantic City, New Jersey and Evansville, Indiana, and the other referred to as LandCo that is comprised of the Tropicana casino property in Las Vegas. Under the plan, the secured component of the $2.3 billion OpCo indebtedness is to be converted to common stock and the unsecured component cancelled. All of the $442 million LandCo secured debt is to be converted to equity.

In addition, the Plans call for Tropicana to retire the $67 million outstanding under its debtor in possession (DIP) financing facility and pay in full certain allowed administrative and tax claims. All of the ownership interests of former owner William Yung and his affiliates will be cancelled and neither Mr. Yung nor any entity affiliated with Mr. Yung will own any equity in the reorganized Tropicana.

According to Scott C. Butera, Tropicana's President and CEO, the Plans will restore the company's financial viability, maximize the opportunity to regain control of casino operations in New Jersey and Indiana, continue rebuilding infrastructure compromised prior to the commencement of the restructuring, and produce value-enhancing returns for its future equity owners.

'The Disclosure Statement and Plans of Reorganization describe nine months of effort to build our management team, infrastructure and capital base so that we can succeed in today's challenging economic environment,' Butera said. 'They also reflect active and ongoing negotiations with our creditors and constituents.

'The company has a management team with deep experience in gaming operations, finance, and marketing,' Butera continued. 'As we developed our plan, we had a unique opportunity to examine the new world of gaming and we believe that the company is well positioned to operate in a more cost sensitive, value conscious industry. Moving forward, we will leverage our brand, our physical assets and our people to provide value-driven entertainment experiences to our customers.

'Tropicana is one of the best known brands in gaming,' he said. 'We expect to build on that recognition and make our operations around the country the standard bearer for top quality entertainment experiences at value-driven prices. With the work we've done since our initial filing last May, we have the people and systems in place to intelligently manage our costs, develop and sustain an extraordinary service culture, target our marketing, and precisely focus our capital expenditures on facilities upgrades that have payoffs in customer satisfaction. We know satisfaction drives loyalty and earning our customers' loyalty is among our highest priorities.'

Yesterday's filings include financial forecasts that reflect the new management's strategic initiatives. Over the next five years, the company hopes to grow its revenue base, maintain its current level of operating expenses and improve net income. Over the five year period, the company projects $275 million of capital investments to refurbish and revamp its casinos and resorts.