Trump equity committee asks court to stop confirmation hearing date

By Ellen Chang

Houston, Jan. 27 - Trump's committee of equity security holders asked the U.S. Bankruptcy Court for the District of New Jersey to deny Trump's request to set a confirmation hearing date and to establish vote solicitation procedures.

The committee said Trump's plan of reorganization grants Donald Trump and his affiliates the exclusive rights to receive and retain consideration on his junior equity interests, that Trump's plan is a "sweetheart deal for conflicted insiders" and other parties such as Donald Trump and UBS Securities LLC and that Trump has not proposed adequate solicitation procedures to ensure that the votes of the equity holders are counted.

The motion said the plan proposed by Trump "wipes out existing non-insider shareholders' interests." The debtors should be pursuing other alternatives that would "maximize the value of the estates and preserve real value for shareholders."

The hearing date is scheduled for Feb. 3. Trump Hotels is an Atlantic City, N.J., hotel and casino owner and operator. Trump Casino & Hotel Resorts filed for bankruptcy on Nov. 21. Its Chapter 11 case number is 04-46917.

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