Carl Icahn has beaten out Park Place Entertainment Corp. for control of the bankrupt Sands Hotel & Casino.
U.S. Bankruptcy Court Judge Judith Wizmur, in an 80-page opinion, favored Icahn's plan to invest $65 million in cash in the struggling casino, which filed for protection under Chapter 11 in January 1998. The casino's unsecured creditors, which are 1,500 vendors, voted in favor of the Icahn plan.
The decision is subject to approval by the Nevada Casino Control Commission.
Icahn, who owns three Las Vegas casinos, would get 46.3% of Sands' new stock and would issue $110 million in bonds in exchange for $182.5 million in existing Sands bonds. "I'm obviously happy that we won," said Icahn, 64.
Park Place officials did not immediately return a telephone call seeking comment Friday.