Trump Entertainment: Beal, Icahn continue to oppose DIP facility

By Lisa Kerner

Charlotte, N.C., April 14 - Trump Entertainment Resorts Inc. first-lien lender Icahn Partners and administrative agent Beal Bank, SSB filed a supplement to their motion objecting to the debtors' modified debtor-in-possession facility filed on April 8 on the grounds that it is a not a "junior facility" and does not provide a $26.9 million "equity cushion" protecting the first-lien lenders as claimed.

The motion was filed in the U.S. Bankruptcy Court for the District of New Jersey on Wednesday.

Icahn Partners includes Icahn Partners LP, Icahn Partners Master Fund LP, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP.

The court approved Trump's plan of reorganization on April 12.

As previously reported, judge Judith H. Wizmur said she would confirm the plan of reorganization proposed by the company and the informal committee of bondholders but noted that she also would have been willing to confirm a competing plan submitted by Beal Bank and Icahn Partners if the company and noteholders did not agree to make some changes to their plan, which they did.

Both plans were confirmable, the judge's ruling said.

Under the confirmed plan, $225 million of new equity will be injected into Trump Entertainment and the company will be able to retain the Trump brand for Atlantic City operations, a company news release said.

Trump Entertainment Resorts, an Atlantic City-based owner and operator of three casino resort properties, filed for bankruptcy on Feb. 17, 2009. Its Chapter 11 case number is 09-13654.

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