Trump reorganization approved by court

New York, April 5 - Trump Hotels & Casino Resorts, Inc.'s plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of New Jersey Tuesday.

Various conditions must now be satisfied before the plan becomes effective and the company exits Chapter 11.

Approval follows a last-minute change to the plan that won support of equity holders.

Under that agreement, 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.

Under the proposed reorganization:

* Holders of the Trump Atlantic City 11¼% first mortgage notes due 2006 with $1.3 billion of claims will receive cash for interest on the new notes from the last payment made on the old notes, $777.34 million of new notes and 26.33 million shares of the new stock. Holders may choose to receive a combination or maximize the amount of notes or stock. Holders will receive the proceeds from the exercise of the class A warrants, for a maximum of $50 million;

* Holders of the Trump Casino Hotel 11 5/8% first priority notes due 2010 with claims of $454.75 million plus interest will receive $425 million of new notes, $21.25 million of cash and 582,000 shares. Holders may choose to receive a combination or maximize the amount of notes or stock;

* Holders of the Trump Casino 17 5/8% second priority notes due 2010 with claims of $54.56 million plus interest will receive cash for the 12 5/8% interest on the notes from the last payment of interest to the effective date of the plan, a further $2.32 million of cash, $47.66 million of notes and 145,000 shares;

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.

A total of $1.25 billion of the new notes will be issued with an interest rate of 8.5%, a 10-year maturity and a senior second priority mortgage claims.

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. 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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