Saturday, June 13, 2009

Icahn Group Buys Tropicana Casino

A bankruptcy judge Friday approved the sale of Tropicana Casino & Resort in Atlantic City, N.J., to a group of lenders that includes billionaire Carl Icahn.

Judge Judith Wizmur of the U.S. Bankruptcy Court in Camden, N.J., signed off on the sale, according to David Scanlan of the New Jersey Casino Control Commission.

The deal calls for the lenders to cancel $200 million of the more than $1 billion in debt the company owes them.

Efforts to find a buyer for the Tropicana Atlantic City began more than a year ago after New Jersey gaming regulators took control of it from Tropicana Entertainment LLC, then run by William J. Yung.

The sale marks the return of Mr. Icahn, the former owner of the Sands hotel and casino in Atlantic City, to the city's boardwalk and its gaming tables. Mr. Icahn sold the Sands for about $250 million to Pinnacle Entertainment in 2006.

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