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November 26, 2009

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Icahn loses bid for hotel-casino

Tuesday, July 25, 2000 | 10:39 a.m.

ATLANTIC CITY -- Bondholders rejected billionaire Carl Icahn's bid to wrest control of the bankrupt Claridge hotel-casino, the Star-Ledger newspaper in Newark reported.

But Claridge, which supports Icahn, said it will move to have the Icahn plan approved anyway during a bankruptcy court hearing Sept. 6.

Under Icahn's plan, bondholders would receive stock in exchange for their notes. Icahn is the largest creditor with about 40 percent of the company's $85 million in outstanding bonds. Claridge would also issue $15 million in new notes.

Icahn's plan was supported by holders controlling 58.1 percent of the dollar value of the bonds, short of the 66 percent it needed to pass, Claridge said.

Unsecured creditors would have been paid in full through seven annual equal payments. Claridge said it believed the unsecured creditors voted to approve the plan.

Icahn is battling Park Place Entertainment Corp. of Las Vegas for control of the bankrupt Sands hotel-casino, which is across the street from the Claridge.

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