Parkplace Entertainment Set To Acquire Claridge Hotels & Casino

Billionaire financier Carl Icahn sold a 43.6% stake in his first mortgage bond to a bankrupt casino in Claridge's to Park Place Entertainment, ending a bidding war on the property and paving the way for a Park Place sale.

In a Feb. 13 filing with the Securities and Exchange Commission, Icahn said Park Place purchased its first mortgage bond on the Atlantic City property for $21.6 million in cash.

As part of the exchange, the Icahn-controlled two companies also received Parkplace's first mortgage bond of 14.5% for the Sands Hotel in Atlantic City, which Icahn acquired last year after a similar bidding war between Icahn and Parkplace.

In the Claridge deal, Park Place contributed about 780,000 of the 7.8% stake in Sands in Ican controlling owner GB Holdings Inc. bidding against Park Place for Claridge.

Park Place's acquisition of Claridge's bonds paved the way for the Las Vegas-based company to buy Claridge's bonds, which had been operating in Chapter 11 bankruptcy for the past year and a half. Park Place offered to buy Claridge's bonds in a cash transaction of about $82 million.

GB Holdings offered $81 million for the property, mostly in stock, but withdrew the bid on Feb. 5.

With Park Place becoming a rival bidder, the bankruptcy court's deal could close as early as May, according to people with knowledge of the situation. 슬롯사이트

"We are excited about the prospects for the Claridge Hotel and Casino of the future," said Scott Laporta, chief financial officer at Park Place.

Parkplace is a summer resort after the signing of the contract, and it is expected to operate as it is without renovating Claridge, which was originally a prime Atlantic City hotel, or creating space for a new facility.