| ATLANTIC CITY, N.J., May 11, 2000 - On May 9,
2000, The Claridge Hotel and Casino Corporation (the �Corporation�), its
wholly owned subsidiary, The Claridge at Park Place, Incorporated (the
�CPPI�) and Atlantic City Boardwalk Associates, L.P. (the �Partnership�)
(collectively, the �Debtors�) received from the United States Bankruptcy
Court in Camden, New Jersey (the �Court�), an order approving the adequacy
of their First Amended Disclosure Statement (the �Disclosure Statement�)
pursuant to Section 1125 of the U.S. Bankruptcy Code. Approval of the Disclosure
Statement is the necessary first step in the Debtors� efforts to receive
approval of the First Amended Joint Plan of Reorganization (the �Plan�).
The Plan proposes that the Partnership will transfer its assets, which
include, principally, the land, building and furnishings of the Claridge
casino hotel to the reorganized CPPI, which will continue under the Plan
to be a wholly owned subsidiary of the reorganized Corporation.
 The
Plan provides for the holders of the Corporation�s $85 million First Mortgage
Notes to receive on a pro rata basis 100% of the equity of the reorganized
Corporation, outstanding on the effective date of the Plan, and debt not
to exceed $15 million in the form of new ten year secured Notes carrying
an 8% coupon rate. The Plan provides for unsecured creditors to be
paid in six equal installments over a five-year period beginning on the
effective date of the Plan. Total payments to unsecured creditors will
not exceed $5.5 million. The Plan and Disclosure Statement, along
with ballots, will be mailed to creditors entitled to vote on or before
May 31, 2000. The deadline for return of the ballots will be 5 p.m. (EDT)
June 28, 2000. The confirmation hearing has been scheduled for July 13,
2000.
On August 16, 1999, The Claridge Hotel and Casino Corporation and The
Claridge at Park Place, Incorporated filed voluntary petitions under Chapter
11 of the U.S. Bankruptcy Code in order to facilitate a financial restructuring.
On October 5, 1999, Atlantic City Boardwalk Associates, L.P. filed a voluntary
petition under Chapter 11 of the U.S. Bankruptcy Code. The Claridge
Hotel and Casino Corporation is a closely-held public corporation and is
the issuer of $85 million of 11 ¾% First Mortgage Notes which are
publicly traded on the New York Stock Exchange under the symbol CLAR02. |
