Stripping the hotel rooms seen as a sign that Icahn plans to unload the project
Carl Icahn is holding a fire sale at the bankrupt Fontainebleau Las Vegas.
The billionaire investor, who picked up the troubled megaresort in partially completed condition for pennies on the dollar - $151 million for a project that had soaked up more than $1 billion in construction costs and will take well more than $1 billion to complete - is selling off beds, dressers, TVs and other furnishings, according to a report first carried on GamingToday.com and cited this week by the New York Post.
Stripping the hotel rooms a sign that he plans to unload the project rather than resume construction, an unidentified source told the Post.
Icahn, who did not return the newspaper’s requests for comment, has said that Las Vegas has been undone by “tremendous overbuilding”.
Jefferies analyst David Katz said if the Fontainebleau is selling furniture, "It suggests Icahn's view is a rapid recovery in Las Vegas is not at hand."
Fire sale at Fountainebleau
September 29, 2010