Trump hearing on disclosure, DIP loan, case conversion delayed again

By Kali Hays

New York, Dec. 22 – Trump Entertainment Resorts, Inc.’s disclosure statement and exclusivity extension approval hearings have been adjourned to Jan. 16 from Dec. 22, according to a Dec. 22 entry with the U.S. Bankruptcy Court for the District of Delaware.

In addition, hearings to consider approval of debtor-in-possession financing and a possible conversion of the Chapter 11 case to Chapter 7 have been pushed to Jan. 9 from Dec. 22.

This is the fourth adjournment of the disclosure statement hearing, the third for DIP and conversion matters, and the second for the exclusivity extension.

As previously reported, Trump’s disclosure statement has drawn objections from its official committee of unsecured creditors, Trump AC Casino Marks, LLC and Donald J. Trump.

The committee is seeking authorization to file its own plan of liquidation for the estate.

The Delaware court ordered the company to show cause as to why it should not be converted to Chapter 7 on Nov. 19, saying that Trump had “no likelihood of rehabilitation” without DIP financing or “finding common ground” with objecting creditors and lenders.

Trump asked for approval of a $5 million DIP loan from IEH Investments LLC at the end of November.

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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