Owner of Trump casinos revises bankruptcy plan

Ahead of a key court hearing Wednesday in Wilmington, Trump Entertainment Resorts Inc. filed a revised bankruptcy plan showing that Carl Icahn - who is owed $292 million by Trump - could recover between 38 percent and 65 percent of his claim.

Those percentages are based on estimated values of Trump Entertainment's two properties - the Trump Taj Mahal and the former Trump Plaza, which closed Sept. 16. The values range from $110 million, if the Taj Mahal is closed, to $190 million if the Taj Mahal remains open, the filing said.

The low end of that range matches the price Brookfield Asset Management agreed to pay for the relatively new Revel Casino Hotel, which cost $2.4 billion to build.

Also in the disclosure statement is the fact that Icahn has agreed to provide $15 million to pay for cost of the bankruptcy if the Taj Mahal is closed next month.

Trump Entertainment has said it will close the Taj Mahal - putting about 2,800 people out of work - if state and local officials do not provide $175 million in aid over five years, including $55 million immediately as Trump exits bankruptcy.

The company has already persuaded U.S. Bankruptcy Judge Kevin Gross to allow it to end employer-sponsored health insurance, stop contributing to a union pension plan, and make other changes to employment terms, projected in total to save $15 million a year.

Wednesday's hearing is to consider a motion to approve the company's so-called disclosure statement, which is supposed to give creditors the information they need to vote for or against the proposed bankruptcy plan. In this case, Icahn and his affiliates are the only parties who get a vote.

Separately, Trump Entertainment asked for court permission to make $1,500 severance payments to 354 Unite Here Local 54 members who lost their jobs when Trump Plaza closed. The total was estimated at $531,000.

The motion also asked for permission to pay accrued vacation time to 312 Local 54 members who lost their Trump Plaza jobs, for a total of about $55,000.

A hearing on the severance motion is scheduled for Nov. 24.

Source: Philly.com