Timing helps Icahn land Tropicana

June 1, 2009 7:41:56 AM PDT
Who says you can't time the market? When Atlantic City's Tropicana Casino and Resort was put up for sale in Jan. 2008, it was expected to fetch about $1 billion.

But after the economy tanked, a group of investors including billionaire Carl Icahn offered to swap $200 million of debt they had already bought at a steep discount in return for ownership of the casino.

And it worked.

The group is expected to be approved as the new owners by a bankruptcy judge in less than two weeks.

It would then need to get temporary approval from New Jersey casino regulators, and apply for a full casino license, which could take a year to get.

The sale became necessary when New Jersey stripped the Tropicana's former owners of their license in Dec. 2007.

Follow Action News on Twitter

Get Action News on your website

Follow Action News on Facebook

Click here to get the latest Philadelphia news and headlines from across the Delaware and Lehigh valleys.


Load Comments