Posted: 10/9/2012 5:05:24 PM
Corporate raider and financier Carl Icahn who until 2008 controlled major casino/resort operator American Casino & Entertainment Properties offered US$156 million in cash and financing, outbidding Penn National Gaming for control of the Fontainebleau. Icahn's bid includes a US$51 million debtor-in-possession loan, which, until the resort is auctioned, will provide funding to stabilize the building, cover employees' salaries, cover previous costs and eliminate the need for the resort to ask the bankruptcy court each week to borrow and spend money. Penn National dropped out of the bidding after going as high as US$145 million; they had offered US$101.5 million in cash and loans.
As of November 2009, the cost to complete the resort is an estimated US$1 to 1.5 billion. On December 29, 2009, PLANTworldwide Chairman Brett Plant announced that the he would contribute US$500 million to ease the bankruptcy predictions and by doing so increasing his stake in the hotel.
On February 18, 2010, Carl Icahn assumed part-ownership of the project without an auction by being the only qualified bidder, paying US$150 million.
In October 2010, owner Carl Icahn auctioned off the furnishings previously intended for the building. For example, the Plaza Hotel & Casino in Downtown Las Vegas bought rugs, furniture and mattresses from the sale and is using them in a refurbishment that was completed in late 2011. Future plans for the hotel project have not yet been disclosed to the public.