GB Holdings withdraws motion to sell Atlantic Coast stock; exclusivity terminated

By Caroline Salls

Pittsburgh, Jan. 18 - GB Holdings, Inc. withdrew its motion to sell its stock in Atlantic Coast Entertainment Holdings, Inc. and its exclusive periods were terminated, according to Wednesday filings with the U.S. Bankruptcy Court for the District of New Jersey.

As a result of the exclusivity termination, the court ordered competing plans of reorganization be filed by March 20.

As previously reported, the company wanted to extend its exclusive plan filing period to May 30 from Jan. 25 and the solicitation period to July 30 from March 27.

According to the motion, concurrently with the filing of its Chapter 11 bankruptcy petition, the company began the process to sell its Atlantic Holdings stock.

After a request from the official committee of unsecured creditors, the court granted a 60-day adjournment of the sale motion to allow the committee to conduct discovery.

Since then, GB Holdings said it has attempted to conduct settlement discussions in search of a consensual resolution, but that resolution has not yet been achieved.

On Jan. 11, GB's official committee of unsecured creditors objected to the exclusivity extension, saying the company's estate consists of only a minority interest in its subsidiary and prospective litigation against Carl A. Icahn and his affiliates.

The committee said none of the traditional bases for extending exclusivity - complexities or unresolved contingencies, prejudice or chaos that would result from denial of the extension or progress toward a confirmable plan - exist in GB Holdings' case.

In addition, the committee said the company has used exclusivity thus far to force a sale of Atlantic Coast stock over the committee's dissent.

The committee said the company should exit bankruptcy within 90 days after its exclusivity terminates.

In addition, the hearing on GB shareholder Robino Stortini Holdings, LLC's motion to appoint an examiner was rescheduled for March 9.

GB Holdings has no operating activities. It filed for bankruptcy on Sept. 29. Its Chapter 11 case number is 05-42736.

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