Trump Defeats Icahn In Battle Over Trump Entertainment Resorts

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Donald Trump first walked away from the company that bears his name, Trump Entertainment Resorts, last year. Then, Trump re-entered the equation and partnered with bondholders to try and gain control of the bankrupt gaming company.

Now, it appears that Trump and the bondholders have won their battle with billionaire Carl Icahn. Trump Entertainment will remain under the control of bondholders, with Trump holding up to a ten percent stake in the company.

A US bankruptcy court issued the ruling and it ended months of posturing between Trump and Icahn. At stake were three properties in Atlantic City. Icahn has become known for buying casinos in AC out of bankruptcy, getting the casinos on stable ground, and then selling the properties at a large profit. This round, however, went to Trump.

"This is a great victory for Trump and for bondholders and we're very happy about it," said Donald Trump, in a phone interview with BusinessWeek. "It's a great loss for Carl Icahn. I was surprised he attempted what he attempted but that's OK. It's fine."

Trump and the bondholders will bring Trump Entertainment out of bankruptcy and the group has a plan to cut debt by over $1 billion. Icahn had a different plan to reduce debt, but the bankruptcy court decided Trump's plan was a better fit for the company.

The Atlantic City casino industry has fallen on hard times after decades of prosperity. The area is facing increased competition, and developers have shied away from any expansion efforts in New Jersey. Pennsylvania appears to be the biggest threat to AC, with lawmakers legalizing table games earlier this year.

April 14, 2010
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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