Icahn's Trump Casino Bid Put on Hold
Carl Icahn has hit a snag in his plan to acquire two Trump casinos following objections by their unsecured creditors' committee. The committee says that the activist shareholder has provided inadequate documentation on his proposal to purchase the Trump Plaza and Trump Taj Mahal in Atlantic City, thereby delaying a hearing scheduled for last week to sign off on the sale.
Furthermore, creditors object to the plan's offer of recovery of $1M, or 0.5%, on unsecured claims that could exceed $232M. Trump Entertainment filed bankruptcy last September and Icahn subsequently offered $285.6M in first-lien notes to pick up the two assets. The hearing will now take place next Wednesday, when a judge will also consider a $20M loan Icahn offered to keep the Taj Mahal in operation. The Trump Plaza closed for business last summer.
