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Icahn Company Offers $125M More for Trump Casinos
Billionaire investor Carl Icahn offers $125M more for bankrupt Trump casinos in Atlantic City
By DAVID PORTER Associated Press Writer
NEWARK, N.J. December 31, 2009 (AP)
Billionaire investor Carl Icahn plans to pump still more cash into his bid to buy Donald Trump’s bankrupt casinos, according to papers filed in federal court.
Icahn already had agreed to buy a majority of the $486 million bank debt on the three properties: Trump Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino.
In a statement filed Tuesday in U.S. Bankruptcy Court, Icahn Partners Inc. committed another $125 million toward propping up struggling Trump Entertainment Resorts Inc.
Trump Entertainment filed for Chapter 11 protection in February, the third such filing for the company and its corporate predecessors. The company’s struggling with crushing debt was exacerbated by a sour economy and competition from slots parlors in Pennsylvania and New York that have lured away some Atlantic City regulars.
Under the proposal advanced Tuesday, Icahn would provide $45 million in immediate, short-term financing and would guarantee $80 million to Trump in the event Icahn doesn’t raise a projected $225 million from other investors through a rights offering.
"Icahn Partners is ‘putting its money where its mouth is’ and demonstrating its level of confidence and commitment," the company said.
Trump bondholders have offered $225 million for the casinos in a deal that would give Donald Trump a 10 percent stake in the reorganized company. The company’s board supported that plan in December but hasn’t reached a final agreement.
Icahn Partners claims in its filing that the bondholders’ plan might not win regulatory approval and delaying a purchase could hurt what it called "this already very fragile company."
Trump Entertainment CEO Mark Juliano didn’t immediately return a phone message Thursday seeking comments.