trump casinos

Trump Beats Icahn In A Battle Over Atlantic City Casinos

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.

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Tags: atlantic city, atlantic city casino, carl icahn, donald trump, NJ, Trump Casinos, trump entertainment, Trump Entertainment Resorts

Icahn Ups The Ante For Trump's Casinos

by Deidre Woollard (RSS feed) —

Billionaire Carl Icahn must really want to get his hands on Donald Trump's Atlantic City casinos, he's upped the amount of money he is willing to spend to win. Last month I mentioned that Icahn joined banker Andy Beal in his battle against Donald Trump and a group of noteholders led by Marc Lasry. Icahn made a deal to buy a majority of the outstanding first-lien bank debt from Beal, who holds $486 million in liens on the casinos. Now according to a statement filed in U.S. Bankruptcy Court, Icahn Partners has agreed to spend another $125 million to prop up Trump Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino.

Trump Entertainment filed for Chapter 11 protection last February but had been struggling for far longer. Icahn must really believe that the Trump casinos are a smart bet in the long run. He has performed similar rescue acts in Las Vegas before, buying hotels and casinos and then later selling them for big profits. Atlantic City had experienced a resurgence in recent years with the addition of new luxury casinos but the last year has seen a decrease in tourism due to the economy and the rise of other casinos in Pennsylvania and other neighboring states.

In the proposal Icahn would spend $45 million in immediate financing with a guarantee to provide another $80 million if he is unable to raise $225 million from other investors through a rights offering. Previously Trump bondholders offered $225 million for the casinos, with Donald Trump holding a 10 percent stake in the new company. The company's board supported that plan but Icahn's new bold move may end up turning some heads.

Tags: donald trump, DonaldTrump, trump casinos, TrumpCasinos