Filed under: Wealth
Big money titans Donald Trump and Carl Icahn have been battling for control of the Trump properties in Atlantic City for a while. At one point it looked like Icahn might have the advantage but a judge has ruled that Trump and his partners represent the better deal for creditors of the bankrupt Trump Entertainment Resorts Inc., when a judge. According to Bloomberg News, U.S. Bankruptcy Judge Judith H. Wizmur sided with the bondholders who are owed $1.2 billion. Their proposal included giving Trump a share of his Atlantic City company.
Icahn had been hoping to take over the company and had purchased $480 million in bank debt from banker Andy Beal. In his plan the debt would have been converted to equity, wiping out the bondholders. The winning plan included a promise by billionaire Marc Lasry of Avenue Capital Group to invest $225 million in Trump Entertainment. Under the bondholder plan that $480 million will be reduced by at least $100 million and the rest would be wrapped up in a new bank loan.
The judge went for the bondholder plan partially because it had more support from creditors. Another factor may have been Trump himself. Trump had vowed to take his name off the project if Icahn gained control. There have been a lot of lawsuits and a lot of debate about the value of the Trump name lately but the bondholders determined that the name itself as a brand is worth millions. But don't feel too sorry for Icahn, he still has that unfinished Vegas project, the Fontainebleau to keep him busy.