Investor Icahn gets approval from bankruptcy court to buy Fontainebleau Las Vegas

Icahn gets approval to buy Fontainebleau Las Vegas

NEW YORK — Billionaire investor Carl Icahn received approval Wednesday to buy the unfinished Fontainebleau Las Vegas casino resort on the Strip.

The approval by the U.S. Bankruptcy Court in Miami had been widely expected, as two other bidders failed to satisfy bankruptcy auction rules — leaving Icahn as the sole bidder.

Last week court-appointed examiner Jeffrey Truitt said in court papers that the two other submissions received by the Jan. 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 $105 million in cash plus $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 Inc. had offered $50 million for the resort in November when bankruptcy auction for the property began but was outbid by Icahn.

Fontainebleau has cost more than $2 billion and was about 70 percent 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 $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 Inc. also committed an additional $125 million to his bid for the struggling Trump Entertainment Resorts Inc., according to court papers.