A trial that decided the fate of ailing Trump Entertainment resorts was conducted last March 2010. Investor Carl Icahn, who is considered an expert in taking over various companies, fought against celebrity billionaire Donald Trump, who has presented the court with a solid take over plan. Both contenders seemed ready to gain control of the bankrupt casino company.

A month later, it was announced that Donald Trump and his partners gained victory. On April 12, a judge ruled that Trump’s bid was better than that of Carl Icahn’s.

Judge Judith H. Wizmur, a US bankruptcy judge, agreed with a group of bondholders who were owed $1.2 billion. The proposal of this group would reduce the debt of Trump Entertainment by $1.4 billion. This would also give Donald Trump as much as 10% of the casino company he used to manage.

Although the trial was performed last month, the battle for the control of the large entertainment oriented company lasted for 14 months.

Furthermore, the group of bondholders, who were supported by Avenue Capital Group’s Marc Lasry, offered to invest $225 million in Trump Entertainment. The bondholder plan also allowed the reduction of the $480 million in bank loans to $100 million at the least.

Wizmur stated that she chose the bondholder plan since it gained more support from creditors than the Icahn proposal.

Post Author: guest

This entry was posted on Tuesday, May 25th, 2010 at 12:18 pm and is filed under Corporate News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.