Trump Entertainment Resorts requests approval of $5 million DIP loan

By Caroline Salls

Pittsburgh, Nov. 26 – Trump Entertainment Resorts, Inc. requested court approval of a $5 million debtor-in-possession financing facility, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Icahn Agency Services is the administrative agent and collateral agent, and IEH Investments I LLC is the DIP financing lender.

Trump said the use of cash collateral will be insufficient to satisfy its ongoing funding requirements to administer its bankruptcy cases through the expected plan of reorganization effective date.

As a result, the company said it needs to supplement the cash collateral with the proposed DIP financing.

The facility will mature on the earliest of Jan. 31, Jan. 16 if a plan confirmation order has not been entered before that date, the plan effective date and the date of acceleration of the DIP loans.

Interest will be 10%, payable in kind.

A hearing is scheduled for Dec. 4.

Trump Entertainment Resorts, an Atlantic City-based owner and operator of casino resort properties, filed for bankruptcy on Sept. 9. The Chapter 11 case number is 14-12103.

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