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December 4, 2009

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Financier gains control of A.C. casino

Friday, Jan. 28, 2000 | 12:10 p.m.

THE ASSOCIATED PRESS

ATLANTIC CITY -- Five months after filing for bankruptcy protection, the Claridge Hotel and Casino Corp. has proposed a reorganization plan that would give financier Carl Icahn control of the struggling casino.

Under the plan, filed Thursday in U.S. Bankruptcy Court in Camden, N.J., the holders of $85 million in first mortgage notes will receive 100 percent of the equity in a new Claridge corporation. All of the casino's assets will be transferred to this new corporation.

Icahn owns 40 percent of these bonds, making him the largest bondholder. Under the plan proposed, Icahn would receive control of the Claridge's business operations.

Creditors will receive full payment over seven equal annual installments.

Icahn's attorney wouldn't say whether Icahn plans to operate the Claridge himself or sell it to another party. A spokesman for the casino said the property would continue to operate as normal.

It is the second casino taken over by Icahn in as many days -- on Wednesday, Icahn acquired the bankrupt Sunrise Suites hotel-casino in Las Vegas for $43.3 million.

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