Very bad news- for me, anyway...It's the end of an era.
NEW YORK (Reuters) -
Donald Trump and his daughter Ivanka have given up their efforts to regain control of Trump Entertainment Resorts in Atlantic City and have thrown their support to bondholders.
Trump and his daughter also agreed to release the company from claims of more than $100 million, as well as halt all discovery and litigation against the bondholders. The company filed for bankruptcy in February.
In exchange, the bondholders, who are owed $1.25 billion, have agreed to give Trump common stock and warrants equal to 10 percent of the company. The plan is subject to bankruptcy court approval.
Kristopher Hansen, counsel for the bondholders, said the group is pleased with the settlement and hopes it will bring a swift end to the cases "for the benefit of all creditors."
The three Atlantic City casinos that make up Trump Entertainment Resorts, which include the Trump Taj Mahal, will continue to bear the Trump name.
"I am motivated to give the properties the best chance to succeed on a reorganized basis," Trump said in a written statement. "Had circumstances not changed, I would have aggressively continued to pursue the debtors' plan with the objective of acquiring control of and revitalizing a company that I have not run for many years."
A Trump Entertainment Resorts spokesman said the company had no comment at this time.
A follow-up conversation between the bondholders and the Trumps is planned for November 25, according to the filing in U.S. Bankruptcy Court in New Jersey.
Trump and the bondholders have been jockeying for control of the company for months. In August, Trump and BNAC Inc, an affiliate of Beal Bank Nevada, proposed to buy the company for $100 million and take it private. Days later the bondholders filed a rival reorganization plan.