Trump first-lien lenders seek return of $28.4 million tax payment

By Caroline Salls

Pittsburgh, June 1 - Trump Entertainment Resorts Inc. lender agent Beal Bank, SSB and lender Icahn Partners LP filed a lawsuit Friday against Trump Marina Associates, LLC, Trump Plaza Associates, LLC and Trump Taj Mahal Associates, LLC in an effort to keep the defendants from surrendering their rights to $28.4 million in alternative tax payments.

According to the lawsuit filed with the U.S. Bankruptcy Court for the District of New Jersey, the Trump parties want to donate $18.8 million of the tax payments to projects and/or funds designated by the Casino Reinvestment Development Authority (CRDA) and receive a return for the balance to use for working capital and operational expenses.

Beal Bank and Icahn said the plans for the tax return violate Trump's cash collateral use order. Both the cash and the company's rights to the CRDA investments constitute collateral of the pre-bankruptcy first-lien lenders, according to the lawsuit.

As a result, Beal Bank and Icahn said the Trump debtors are required to deliver the CRDA cash to the first-lien lenders.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.