Claridge Casino's Bankruptcy Plan Approved by New Jersey Court

(Bloomberg) -- Claridge Hotel and Casino Corp.'s bankruptcy reorganization plan was approved by a New Jersey court, clearing the way for the casino's sale to Park Place Entertainment Corp.
With the sale, bond holders may receive an 83 percent recovery on claims of $90.5 million, Claridge said. Unsecured creditors will get a 61.5 percent recovery, the company said.
Las Vegas-based Park Place, the largest casino company, will close on the purchase on May 31, Claridge said. The reorganization plan was approved in bankruptcy court in Camden, New Jersey.
Claridge filed for bankruptcy protection in 1999 when the casino had trouble competing with larger casinos run by rivals including Park Place.
Park Place and Financier Carl Icahn's Sands Hotel & Casino in Atlantic City submitted competing bids last year for the Claridge. Icahn pulled out of the bidding after New Jersey officials cleared Park Place's proposed purchase earlier this year, saying it wouldn't create ``undue economic concentration'' in the second largest casino market.