Mr. Carl Icahn succeeded in bidding for the Tropicana Casino and Resort in bankruptcy court. On August 26th, 2009, Icahn received the go signal from the New Jersey gaming regulators to once again manage the casino facility under the reorganization of the Tropicana Entertainment LLC Company.
This is vital step for Icahn, who is buying the Tropicana Entertainment in bankruptcy court proceedings in Delaware. When that happens, Icahn will be free to market the Atlantic City gaming facility together with other casino facilities Tropicana owns around the US. Observer Larry Bellsor said that there still have a lot of work to be done to get the Tropicana Casino and Resort up to the high standards they once operated under.
But Bellsor said that Icahn has faced this kind of challenge before and if anyone can turn the fortunes of a casino facility around, it is him. Carl Icahn is no stranger to acquiring casino facilities at a low cost, overhauling them up and then selling them at a bigger price than he originally paid for. He has done it previously with the Sands Casino. But there is no indication that Icahn plans to do the same with Tropicana.
With the current condition of the economy, industry insiders said that Icahn will likely try to make Tropicana highly profitable and help with the recovery of the gaming industry in Atlantic City. The Tropicana Casino will not be formally turned over to Icahn and his investment organization until the bankruptcy proceedings are finalized.
Gilbert Brooks, a lawyer for Icahn, believes that could be accomplished by the end of the year. Until then, a state-appointed conservator will continue to manage the casino facility.
09/03/2009 22:12 PM