Press Release: The Claridge Hotel and Casino Corporation
October 18, 2000
ATLANTIC CITY, NJ -- On October 13, 2000, The Claridge Hotel and Casino Corporation (``Corporation'') which operates
the Claridge Casino Hotel here informed Judge Wizmur of the United States Bankruptcy Court that, after careful
deliberation, its Board of Directors intends to move forward with Park Place Entertainment Corporation's (``Park
Place'') bid to purchase the Claridge Casino Hotel.
The Board of Directors has determined that the sale of the Claridge Casino Hotel to Park Place would return substantial
value to its creditors. The Board's financial advisors have estimated that noteholders could receive an approximately
80% recovery.
Park Place's purchase of the Claridge Casino Hotel is contingent upon, among other matters, its receiving certain
regulatory approvals from the New Jersey Casino Control Commission and the confirmation of a Plan of Reorganization
by the United States Bankruptcy Court.
GB Holdings, Inc. whose bid for the Claridge Casino Hotel expired by its own terms on October 13, 2000, indicated
that it may file a competing Plan of Reorganization. Judge Wizmur scheduled November 13, 2000 for the submission
of revised Plans of Reorganization and Disclosure Statements.
On August 16, 1999, the Corporation and its subsidiary, The Claridge at Park Place, Incorporated, that operates
the Claridge Casino Hotel, filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in order to facilitate
a financial restructuring.
The Claridge Hotel and Casino Corporation is a closely-held public corporation and is the issuer of $85 million
of 11-3/4% First Mortgage Notes which are publicly traded on the New York Stock Exchange under the symbol CLAR02.
SOURCE: The Claridge Hotel and Casino Corporation