Carl Icahn’s bid to to acquire a pair of Trump Entertainment Resorts casinos has been delayed by the unsecured creditors’ committee of the two gaming houses.
The committee objected to Icahn’s plan to take control of the Trump Taj Mahal and Trump Plaza in exchange for mostly debt. The creditors say the activist investor has not provided enough documentation about the proposed deal.
As a result, a hearing that was scheduled for last week to approve the sale was pushed back to Jan. 28. On that date, the judge overseeing Trump Entertainment Resorts’ bankruptcy will also consider whether to approve a $20 million loan Icahn has offered to keep Trump Taj Mahal operating, Bloomberg News reported.
Icahn and related entities are offering $285.6 million in first-lien notes for ownership of the two resorts. The creditors’ committee opposes the plan because it only offers recovery of $1 million, or 0.5 percent, on unsecured claims. Those claims could top $232 million.
Trump Entertainment filed for Chapter 11 bankruptcy protection in September. By that time, Trump Plaza had already closed for business.
Icahn bought the Tropicana Casino & Resort in Atlantic City out of bankruptcy in 2010. [Bloomberg News] — Tess Hofmann