International edition
June 23, 2021

The money is expected to be used to restart construction on the project

Icahn gets approval to buy Fontainebleau Las Vegas

(US).- Billionaire investor Carl Icahn received approval this week to buy the unfinished Fontainebleau Las Vegas casino resort on the Strip. The approval by the US Bankruptcy Court in Miami had been widely expected, as two other bidders failed to satisfy bankruptcy auction rules - leaving Icahn as the sole bidder.

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ast week court-appointed examiner Jeffrey Truitt said in court papers that the two other submissions received by the January 15 deadline didn't include the required deposit. Three other parties indicated interest - two considering a joint offer - but didn't bid, Truitt said in the filing.

Icahn's offer includes us$ 105 million in cash plus us$ 45 million in debtor-in-possession financing. The money is expected to be used to restart construction on the project, including its retail component. Penn National Gaming had offered us$ 50 million for the resort in November when bankruptcy auction for the property began but was outbid by Icahn.

Fontainebleau has cost more than us$ 2 billion and was about 70 % complete when developers filed for Chapter 11 protection in June.

Icahn has been moving feverishly on casino properties recently, with Nevada gambling regulators last week approving his plan to control nine casinos in four states as part of the bankruptcy reorganization of Tropicana Entertainment LLC.

In December he revealed in federal court papers in New Jersey that he planned to pump more cash into his bid to buy Donald Trump's bankrupt casinos. Icahn already had agreed to buy a majority of the us$ 486 million bank debt on the three properties: Trump Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino.

Icahn Partners also committed an additional us$ 125 million to his bid for the struggling Trump Entertainment Resorts Inc., according to court papers.

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