Trump Casinos Bankruptcy Case Drawing to a Close
Trump Taj Mahal
The heated battle between potential Trump casino investors, Carl Icahn and Andy Beal, and Donald and Ivanka Trump, over the three Trump casinos in Atlantic City, is finally drawing to a close. At the moment, Icahn and Beal are going head to head against a deal put forward by Trump Entertainment Resorts Inc. While both parties wish to save the failing Atlantic City Casinos, Icahn and Beal are attempting to purchase 100% equity in the firm in exchange for $484 million, while the deal put forward by Trump’s lawyers (which is supported by noteholders in the company) would mean $225 million is “injected” into the company, as well as the guarantee that the resorts would continue to use the Trump name.
Trump Entertainment Resorts Inc’s leading attorney, Michael Walsh, suggested that while Trump’s offer allows the company to “debt by a substantial amount”, Walsh has alleged that Icahn’s offer has simply been made because he “just saw a bargain”. However, Icahn’s lawyer has suggested that the casinos are “burning cash” and will continue to do so until someone steps in and takes control of the debt. As both parties have made their closing arguments in the bankruptcy case, it’s believed the judge, Judith H. Wizmur, will reach a decision on the future of the casino – and consequently who owns it - next month.
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