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Trump Forms Casino Reorganization Plan

ATLANTIC CITY, NJ-Trump Hotels & Casino Resorts will go through bankruptcy court after reaching agreements with bondholders on a reorganization plan.

By Barbara Jarvie | Updated on October 22, 2004

ATLANTIC CITY, NJ-Donald Trump will retain the position of chairman and CEO at Trump Hotels & Casino Resorts as part of the complex restructuring of the company. Trump announced that he and a majority of bondholders had reached agreement on a reorganization effort.

The support agreement contemplates that the company would beginreorganization proceedings by late November and that the plan itself would be confirmed by mid-April 2005 and consummated by May 1, 2005. The Company intends to arrange for up to $100 million interim financing during the proceedings.

As part of the plan, Trump will invest approximately $71.4 million into the recapitalized company. That investment will consist of a $55 million cash equity investment and the conversion of approximately $16.4 million principal amount of TCH Second Priority Notes owned by him into shares of the recapitalized Company’s common stock. He is expected to remain the largest individual stockholder of the company with approximately 27% of the company’s common stock.

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