Trump Entertainment gains court approval of $20 million DIP facility

By Kali Hays

New York, Jan. 30 – Trump Entertainment Resorts, Inc. obtained approval of a $20 million debtor-in-possession financing facility, according to a Friday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Trump said the use of cash collateral will be insufficient to satisfy its ongoing funding requirements and to effectively 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 Dec. 31, 2015 or March 13 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.

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

Interest will be 10%, payable in kind.

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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