Hooters Hotel-Casino Up On Auction Block

The Hooters Hotel-Casino is going up on the auction block Tuesday. The hotel-casino will be sold at auction under a deal that is disclosed in the U.S. Bankruptcy Court.

The 696 room property is east of the Las Vegas Strip, on Tropicana Avenue. Chapter 11 bankruptcy reorganization and protection was filed on August 1st, this past summer. The bankruptcy was filed in order to block a foreclosure that was threatened by the Canpartners Realty Holding Company IV. Canyon Capital Realty Advisors of Los Angeles is a $20 billion investment company, and Canpartners is a part of them.

Since the filing of the Chapter 11 bankruptcy, Hooters and Canpartners have had multiple fights.

Canpartners has expressed that they believe that bankruptcy is a waste of money and time, and that because the Hooters Hotel-Casino is so deep in debt, that a reorganization effort would be futile. Canpartners believes that the Hooters Hotel-Casino property is worth around $80 million.

Hooters has defended filing for bankruptcy, and has said multiple times that they should be allowed to try and reorganize, as well as seek equity capital.

A hearing this past week has determined that the property should be auctioned by February 12, 2012. The court has not finalized the sale process or the auction date yet though.

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