Trump stockholders call on court to end Trump's exclusive right to propose reorganization plan

New York, Feb. 8 - Trump Hotel & Casino Resort's official committee of equity security holders called on the U.S. Bankruptcy Court for the District of New Jersey to terminate the company's exclusive right to propose a plan of reorganization.

The committee complained that the plan of reorganization put forward by the company is "a sweetheart deal for conflicted insiders and other interested parties."

"The equity committee is entitled to a reasonable opportunity to test in the open market the fairness of the plan's multitude of insider transactions," the committee said in a filing with the court Monday.

While the company says the plan was evaluated by a special committee of directors, the equity committee alleges the committee "did not devote any serious attention to the restructuring until long after the debtors had chosen the course of further enriching Mr. Trump."

Giving Trump exclusivity will at least "severely chill, if not totally destroy, any chance of attracting alternative restructuring proposals," the committee added.

A hearing is scheduled for Feb. 23.

Trump, an Atlantic City, N.J., hotel and casino owner and operator, filed for bankruptcy on Nov. 21. Its Chapter 11 case number is 04-46917.

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