Financier gains creditor support in bid to take over Sands

Wednesday, Jan. 19, 2000 | 11:07 a.m.

THE ASSOCIATED PRESS

ATLANTIC CITY -- Financier Carl Icahn's reorganization plan for the bankrupt Sands casino in Atlantic City won some creditors' support over the rival proposal of Las Vegas-based Park Place Entertainment Corp.

Icahn and a committee of unsecured creditors submitted a plan that would give companies controlled by Icahn a 50 percent stake in the Sands in exchange for a $60 million investment. Icahn would exchange about $190 million of the casino's debt for $110 million in new notes and pay $4.87 million in cash to the unsecured creditors.

Park Place offered in November to make a $30 million investment in the Sands and to exchange its debt for $128 million in new notes, in exchange for an 80 percent stake. Park Place can increase its offer by Feb. 16.

The unsecured creditors are mostly vendors to Atlantic City's casinos that are owed money for food, construction and other goods and services, said Eric Browndorf, their attorney. They oppose one more casino coming under the control of Park Place, which owns the Atlantic City Hilton, Caesars Atlantic City and Bally's Park Place in Atlantic City.

"This plan will prevent consolidation of additional casinos under the Park Place banner and assure a competitive landscape in the Atlantic City casino market," Browndorf said in a statement.

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