Hooters likely to be sold in February

Hooters hotel-casino just off the Las Vegas Strip.

The Hooters hotel-casino in Las Vegas will be sold next month under plans disclosed this week in U.S. Bankruptcy Court.

Unable to meet its debt payments, the 696-room Tropicana Avenue property filed for bankruptcy last year and then agreed with its main creditor that it will be sold to the highest bidder.

The creditor, Canpartners Realty Holding Company IV, says Hooters is worth no more than $80 million even though it’s leveraged to the hilt with $181 million in debt.

It’s unknown if Canpartners will simply acquire the property with a “credit bid” — Canpartners holds $178 million of the debt — or whether another party will step up with a superior offer.

Under plans proposed Tuesday, bids for Hooters would be due on a date tentatively set for Feb. 10 and an auction, if necessary, would be held on the tentative date of Feb. 17.

U.S. Bankruptcy Judge Bruce Markell on Wednesday set a Jan. 18 hearing date on the sales plan.

In its latest court filings, Hooters said its net revenue for the 11 months ended Nov. 30 was $40.9 million, a slight increase from $40.5 million for the 11 months ended Nov. 30, 2010.

The property lost $6.3 million during the 11 months ended Nov. 30, an improvement from the $15.8 million lost during the year-earlier period.

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