Business notes

NATIONAL

OWNER OF TROPICANA CASINOS TO SEEK CHAPTER 11 PROTECTION

The fallout from losing its New Jersey casino license will force the owner of Tropicana casinos in Atlantic City and Las Vegas to seek Chapter 11 bankruptcy protection, the company said Monday. Kentucky-based Columbia Sussex Corp., the hotel corporation founded by Tropicana owner William J. Yung III, shares administrative and business functions with the Tropicana affiliates but would not be involved in the bankruptcy filing. Tropicana Entertainment LLC said it plans to continue operating and will keep current staffing levels. It was buffeted by a chain of events that began Dec. 12 when the New Jersey Casino Control Commission determined that the company was incapable of running the "first-class operation" required by state law and stripped the Tropicana in Atlantic City of its casino license after less than a year. The company expected to file for bankruptcy protection Monday, listing assets of $2.8 billion and liabilities of $3.3 billion.

BANKS TIGHTENING LOAN STANDARDS

The Federal Reserve reports that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis. The Fed reported Monday that the percentage of banks reporting tighter lending standards was near historic highs for nearly all loan categories. The survey, conducted in April, found that nearly two-thirds of banks surveyed had tightened lending standards on traditional home mortgages, with 15 percent saying those standards had been tightened considerably.

MERCK ELIMINATING 1,200 MORE JOBS

Merck & Co. said it is eliminating 1,200 U.S. sales jobs, a step that comes a week after federal regulators' surprise rejection of an experimental cholesterol drug heavily touted by the pharmaceutical company. The cuts come on top of the elimination of about 8,100 positions under a sweeping restructuring announced in December 2005. The new cuts are to be completed by the end of July, with employees being notified by the end of this month.

WAL-MART TO EXPAND DISCOUNT-DRUGS PLAN

Wal-Mart Stores Inc., the world's largest retailer, announced Monday it would expand its discounted prescription drug program to offer 90-day supplies for $10 and add several women's medications at a discount. It also said it would lower the price of more than 1,000 over-the-counter drugs. The move is the third phase of a company program that began in 2006 to provide a 30-day supply of generic prescription drugs for $4. The company said the program has saved customers more than $1 billion.