ST. LOUIS -- Isle of Capri Casinos ( ISLE) said Tuesday its fiscal second-quarter loss narrowed on fewer charges and that it is suspending expansion work on its Biloxi, Miss. resort until economic conditions steadily improve.For the period ended Oct. 26, the casino operator reported a loss of $13.5 million, or 43 cents per share, compared with a loss of $24.6 million, or 80 cents per share, in the prior-year period. Year-ago results included $9.6 million in writeoffs, preopening and development costs, as well as an $11.5 million loss on the early extinguishment of debt. Revenue declined 9% to $254.1 million from $278.8 million. Analysts surveyed by Thomson Reuters forecast a smaller loss of 21 cents per share on revenue of $270.2 million. Analysts' estimates typically exclude one-time items. Isle said it settled a Hurricane Katrina insurance claim and anticipates an approximately $95 million payment by the end of the month. The company will report an approximately $90 million third-quarter gain related to the settlement. While the insurance payment is expected to provide some breathing room for liquidity for the next 12 months, Executive Vice Chairman and Chief Executive James Perry said in a statement that the company will not take on any new capital projects or continue work in Biloxi partly due to current economic and capital market conditions. In July, Isle of Capri Casino said it would spend about $160 million on renovations at its Biloxi property. The company had initially planned expansion work in 2007, but put it on hold as it reassessed the resort's needs. The expansion, which was targeted for a 2010 completion, was to have included a new single-level casino, restoration of convention space, new restaurants and the renovation of some hotel rooms. Meanwhile, Hurricanes Gustav and Ike hurt second-quarter earnings before interest, taxes, depreciation and amortization by at least $3.5 million. Isle also said results were hurt by the Colorado smoking ban and increased competition. In morning trading, Isle of Capri shares fell 41 cents, or 15%, to $2.32.