Yes the Tropicana Atlantic City, which was “repossessed” by the Casino Control Commission over a year and a half ago, has finally been sold…to Carl Icahn. From the AC Press:

Tropicana Casino and Resort, once expected to fetch $1 billion or more, was sold today for $200 million to a group of lenders headed by billionaire financier Carl C. Icahn.

A bankruptcy court judge approved the sale agreement, culminating an 18-month quest for new ownership that began when the economy was strong and ended with it in a deep recession.

Icahn and his fellow lenders, who already hold a $1.4 billion mortgage on Tropicana, timed the market downturn perfectly by stepping in when no other investors were willing to bid to drive up the price.

"There is basically no other option available at this point," U.S. Bankruptcy Court Judge Judith H. Wizmur said while approving the sale to the Icahn group.

The deal is pending regulatory approval by the New Jersey Casino Control Commission and a final closing, a process expected to take until year's end.

Tropicana went on the market in December 2007, when the troubled former owners were stripped of their New Jersey gaming license for mismanagement and regulatory violations.

Bankruptcy judge approves $200M. Tropicana sale to Icahn group.

Since Icahn specializes in turning around distressed properties, this might not be an entirely bad thing. Yes, there’s the sad example of the Sands in Atlantic City, but the Stratosphere here in Vegas ended up being a win-win-win: he took the casino out of bankruptcy, ran it successfully, and sold it at a profit. That’s how the game is played.

At this stage, the Tropicana brand name has suffered such severe collateral damage in Atlantic City that I wonder whether a complete re-branding has been contemplated, since the casino is no longer owned by the parent of the Las Vegas Tropicana. I also wonder whether being a standalone property will change anything about the way it’s marketed.