Toronto’s Onex Corporation, a private equity firm specializing in corporate buyouts, is reportedly interested in the struggling Tropicana Entertainment LLC.

According to Canadian news reports,  Onex is teaming up with Alex Yemenidjian, former president of MGM Grand in Las Vegas, to explore potential buyout targets that include the casino company, which recently filed for bankruptcy protection.

Tropicana Entertainment is being forced to sell its Atlantic City Tropicana property after being denied licensing by the New Jersey Casino Control Commission. The company also sold its Casino Aztar riverboat. Onex has offered the company $100 million in financing to aid in its restructuring, a move seen as an attempt to gain leverage for a potential buyout.

The beleaguered operators’ Las Vegas Tropicana property, though aging and outdated in design next to the newer mega-resorts, is viewed as a prime potential acquisition because of its unbeatable location on the Strip.

By Casino Connection Staff