Trump settlement with equity committee approved by court

Houston, March 31 - Trump Hotels & Casino Resorts, Inc.'s agreement with its official committee of equity security holders was approved by the U.S. Bankruptcy Court for the District of New Jersey.

The court signed off on the change after hearing that it was backed by the affected creditors, Donald Trump and Robino-Stortino Holdings, LLC and Harbert Distressed Investment Master Fund, Ltd., the co-chairs of the company's equity committee.

Robino-Stortini and Harbert agreed to change their votes opposing the plan to votes in favor.

Under the agreement announced earlier in the month, Trump Hotels will make a $17.5 million cash payment to unaffiliated stockholders.

In addition, Donald J. Trump will exchange his right to receive the former World's Fair Site in Atlantic City, New Jersey for additional equity in the recapitalized company, bringing Trump's stake to 30% of the company's fully diluted common stock.

The World's Fair Site would be sold at auction and the net proceeds distributed to the company's unaffiliated common stockholders. The property will be subject to a perpetual negative covenant preventing future owners or any transferee, assignee, occupant or lessee from developing any gaming activities on the property.

The class A warrants to purchase up to an aggregate of approximately 8.29% of the recapitalized company's new common stock will be reallocated, with the unaffiliated common stockholders receiving class A warrants to purchase up to approximately 5.34% of the recapitalized company's new common stock and Mr. Trump receiving the remaining warrants to purchase approximately 2.95% of the new common stock.

Trump Hotels & Casino Resorts filed for bankruptcy on Nov. 21 in the U.S. Bankruptcy Court for the District of New Jersey. Its Chapter 11 case number is 04-46898.

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