ATLANTIC CITY, N.J. - USA - Billionaire
financier Carl Icahn has beaten out Park Place Entertainment
Corp. (NYSE:PPE - news) for control of the bankrupt Sands
Hotel & Casino.
U.S. Bankruptcy Court Judge Judith Wizmur, in
an 80-page opinion issued Friday, favored Icahn's plan to
invest $65 million in cash in the struggling casino, which
filed for protection under Chapter 11 in January 1998.
``We welcome Carl Icahn to Atlantic City,''
said Eric Browndorf, an attorney for unsecured creditors who
have been holding $6.7 million in bills for goods and services
rendered to the casino before it filed for bankruptcy.
``It's going to be terrific for everyone, both
the existing creditors and all the vendors in Atlantic City,''
Browndorf said.
The decision is subject to approval by the
state Casino Control Commission.
Icahn, who owns three Las Vegas casinos, will
get 46.3 percent of Sands' new stock and will issue $110
million in new bonds in exchange for the $182.5 million in
existing Sands bonds.
Park Place, which owns more than 25 casinos,
had proposed spending $40 million on the property in exchange
for 57.5 percent of the new stock and giving bondholders $128
million in new bonds.
``I'm obviously happy that we won,'' said
Ichan, 64.
Despite the casino's past troubles, he feels
confident he can turn it around. He'll start by trying to make
this casino more competitive, like his Las Vegas casinos, by
loosening the odds to make it easier for players to win.
``If you keep your costs down, there's a
market there. Bring them in, give them a better deal,'' Ichan
said.
``We're thrilled,'' said Frederick Kraus,
executive vice president of the Sands, which favored Icahn's
plan, too. ``We think (Icahn's plan) won because the offer was
higher and better, and it was enthusiastically supported by
the trade creditors.''
The unsecured creditors, who are 1,500
vendors, voted in favor of the Icahn plan.
Park Place officials did not immediately
return a telephone call seeking comment Friday.
(Associated
Press)
