Tropicana Entertainment Inc. reported that its subsidiary companies Columbia Properties Laughlin and CP Laughlin Realty entered into and simultaneously closed a sale and lease back transaction with Laughlin Hotel and Nevada Restaurant Services.
In its release on July 1, the Company said that pursuant to the terms of an asset purchase agreement, CP Laughlin and CPL Realty sold substantially all of the assets associated with the operation of the River Palms Casino in Laughlin, Nev., to the Buyers, in exchange for $6.75 million in cash.
Concurrently with the execution and closing of the asset purchase agreement, CP Laughlin leased back River Palms for a period of up to 90 days, subject to an additional 30 day extension, and further subject to earlier termination rights. Tropicana intends to terminate the lease and discontinue its operation of River Palms in September 2014.
"We are pleased to announce this transaction today," said Tony Rodio, President and Chief Executive Officer for Tropicana. "We have had River Palms on the market for some time and upon the closing of this transaction and the discontinuance of our operation of River Palms in September 2014, we will be able to focus our Laughlin efforts exclusively on our flagship property - Tropicana Laughlin."
"Nevada Restaurant Services is excited about the opportunity to operate the River Palms in the Laughlin market and looks forward to re-opening the facility quickly after a temporary closure while renovations and improvements are made to the property," said Craig Estey, President of Nevada Restaurant Services.
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