The Work

June 12, 2009 4:51 PM

Update: Icahn, Lenders Win Tropicana Casino

Posted by Zach Lowe

Our colleague Brian Baxter has previously covered all the bases in the bankruptcy of Tropicana Resort and Casino in lovely Atlantic City, N.J., but we do have a quick update to finish off your Friday: A group of lenders led by activist investor (we think that's his official title now) Carl Icahn has won ownership of the casino after no other bidders showed any interest in topping the lenders' initial offer, according to Reuters and The New York Times.

Members of the committee of prebankruptcy lenders (a group that includes Icahn and the agent lender, Credit Suisse) agreed to retire about $200 million in debt in exchange for ownership of the casino as it emerges from Chapter 11. 

A team from Sonnenschein Nath & Rosenthal has been representing Icahn personally throughout the Tropicana bankruptcy, court records show. Partners Peter Wolfson and Holly Falkowitz are the lead partners on the team. 

Gilbert Brooks has led a team from Duane Morris advising the general committee of prebankruptcy lenders, Brooks says. Brooks was a partner at WolfBlock, which voted to dissolve itself in March. He landed quickly at Duane Morris and took the Tropicana work with him to his new firm, he says. He could not comment further on the deal.

Kirkland & Ellis is lead debtor's counsel for Tropicana, which first filed for bankruptcy a year ago. Cravath, Swaine & Moore has been advising Credit Suisse.

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