Las Vegas – Tropicana Entertainment LLC said Tuesday it has submitted a reorganization plan that would break its ties to a Kentucky businessman and separate its Las Vegas casino into a company apart from its other properties.

Tropicana filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware in May, listing assets of USD 2.8 billion and liabilities of USD 3.3 billion.

Tropicana has been trying to restructure part of the USD 3 billion debt load, which stems largely from its USD 2.1 billion buyout of Aztar Corp. in 2007. Financial problems began after the company lost its license to operate the Tropicana Atlantic City and the economy slumped.

In a filing with the Delaware federal bankruptcy court, Tropicana said it would create an organization named OpCo that would house 10 casinos and resorts, including sites in Evansville, Ind., and Atlantic City, N.J. The other company, LandCo, would consist of the Tropicana Las Vegas casino.

The reorganization would include plans to have the secured portion of OpCo’s USD 2.3 billion debt converted to common stock and the unsecured portion canceled. LandCo’s USD 442 million secured debt would be converted to equity.

Tropicana would retire USD 67 million outstanding in a debtor-in-possession financing agreement and fully pay some administrative and tax claims.

William Yung III‘s ownership interests would be canceled, and he would not have equity in the reorganized company. Yung stepped down in June as an officer of the company, which is based in Crestview Hills, Ky., and signed away his right to control it, though he still owns it.