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Icahn Captures Tropicana Casino at Fire Sale Price
ATLANTIC CITY, NEW JERSEY --
Carl Icahn's stalking-horse bid for the Tropicana Casino in Atlantic City turned out be all that was needed for the billionaire investor to acquire the resort. The US Bankruptcy Court in Camden, New Jersey approved the sale today in the absence of other bids, and all that is needed now is approval by state gambling regulators.
Icahn placed a bid of $200 million for the hotel after a previous applicant, the Cordish Company, withdrew its successful bid, citing worsening economic conditions. The process remained open for several weeks, yet no higher offer than Icahn's emerged, leaving trustees with no choice but to accept Icahn's low offer.
Icahn and his investment group also receive control of casinos in Mississippi, Louisiana, and Indiana, while the Tropicana in Las Vegas goes to the Onex Corporation.
“We fully expect to continue to operate in a smooth and uninterrupted manner and Tropicana customers will continue to receive the highest-quality hotel, entertainment and casino experience,” said current Tropicana President Mark Giannantonio.
Icahn deal counts doubly as a bargain. Not only is the sum involved less than a quarter of bids rejected last year by trustee Gary Stein as too small, it also will be paid by forgiveness of debt by Icahn and other bondholders, rather than as cash.
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