Battle Begins Between Trump And Bondholders For AC Casinos

Donald Trump wants control of the company that bears his name, Trump Entertainment Resorts, and in order to get that control he will have to put up more money than he expected. Bondholders, however, are also open to upping the ante.

On Wednesday at a Camden hearing, Trump and his investment group, which involves his daughter Ivanka, raised their bid to buy the bankrupt Trump Entertainment. The new bid from Trump was over $113 million. That did not compare financially to the bondholders new bid.

Bondholders, who do not want Trump to gain control of the company, are worried that under Trump's plan they will be left out in the cold. They have upped their offer for Trump Entertainment to $225 million. Although there is a big difference in the dollar figure, some believe that Trump's plan has a better chance of succeeding.

"We've always been of the opinion that the Trump-Beal plan offers the best opportunity for the company to emerge from bankruptcy with the proper capitalization and give us an opportunity for future growth," said Mark Juliano, CEO of Trump Entertainment Resorts.

The issue may still be up in the air for a while. Bankruptcy Judge Judith Wizmer has set January 20th as the first of five hearing days that will determine the company's fate. Wizmer also shot down an attempt by Trump to have a bondholders proposal thrown out.

Trump resigned from the board of the company that bears his name after he felt that bondholders were making the wrong decisions. Trump offered to buy the company, but was turned down. He then waited until the company went into bankruptcy protection and emerged as a buyer for the company earlier this year.

October 8, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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