Trump disclosure statement approved; confirmation hearing set for April 5

By Ellen Chang

Houston, Feb. 15 - Trump Hotels & Casino Resorts' disclosure statement for its new plan of reorganization was approved by Judge Judith Wizmur, according to a Tuesday filing with the U.S. Bankruptcy Court District for the District of New Jersey.

The confirmation hearing for the plan will take place April 5. The deadline for objections to the plan and for shareholders and bondholders to vote on the plan is March 21. The deadline for the responses to the objections is April 1.

Under the proposed reorganization, holders of the Trump Atlantic City 11¼% first mortgage notes due 2006 will see a recovery of 93.2%, holders of the Trump Casino Hotel 11 5/8% first priority notes due 2010 will recover 100%, holders of the Trump Casino 17 5/8% second priority notes due 2010 will recover 95.4%, while Donald Trump will recover 90% for the notes he owns. Other secured claims will receive 100%, according to the disclosure statement.

The plan calls the Trump Atlantic City notes and Trump Casino Hotel notes to be exchanged for new common stock, cash and/or new notes.

Owners of the existing Trump Hotels & Casino Resorts common stock will receive 3.4 million class A warrants, with an aggregate price of $50 million or $14.60 per share. Proceeds of the class A warrants will go to Trump Atlantic City noteholders. There will also be a 1,000 to 1 reverse stock split.

The plan includes a $55 million cash equity investment by Donald Trump and a contribution of the $16.4 million face amount he owns of the 17 5/8% second priority mortgage notes due 2010 of Trump Casino Holdings, LLC and Trump Casino Funding, Inc.

According to the plan, holders of $1.3 billion of Trump Atlantic City notes would get cash, the proceeds from the sale of warrants or the stock for any warrants not exercised, $777.34 million in new 10-year 8.5% senior second priority mortgage notes and 26.33 million of new common shares. The total amount of cash would be based on the interest on $777.3 million of new notes at 8.5% from the last payment on the Trump Atlantic City notes to the effective date of the plan.

Trump Atlantic City noteholders can choose to get more notes and fewer shares or more shares and fewer notes. If they choose to receive more notes, they would get $893.56 per $1,000 of notes. If they chose to take more stock, they would get 61.21 shares per $1,000 of principal.

Trump Casino Holdings first priority note claims will get $425 million of new notes, $21.25 million in cash and 582,283 new shares plus cash for the 12 5/8% interest on the notes from the last payment of interest to the effective date of the plan.

Trump Casino Holdings first priority noteholders could also choose to take more cash, $70 per $1,000 of notes, and fewer shares; or more shares, 4.8 shares per $1,000 of notes, and less cash.

Trump Casino Holdings second priority noteholders will get $2.32 million in cash, $47.66 million in new notes, 145,116 new shares and cash for the interest accrued on $54.6 million of 18 5/8% notes from the date of the last payment to the effective date of the plan.

The plan calls for the company to get a $500 million exit facility through Morgan Stanley Senior Funding Inc., UBS Loan Finance LLC and UBS Securities LLC.

Trump Hotels & Casino Resorts filed for bankruptcy on Nov. 22. Its Chapter 11 case number is 04-46898.

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