Trump, Thermal Energy settle Taj Mahal and Plaza energy service claims

By Caroline Salls

Pittsburgh, March 31 – Trump Entertainment Resorts, Inc. requested court approval of a claim settlement with Thermal Energy LP I, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Before its bankruptcy filing, Trump entered into agreements under which Thermal sells steam and chilled water for the Trump Taj Mahal Casino Resort and the Trump Plaza Hotel and Casino to heat and cool the properties.

Under a settlement approved by the court on March 12, Thermal agreed to rejection of the energy service agreements, effective March 31.

Trump said it entered into a new thermal energy agreement for the Trump Plaza on Tuesday under which Thermal Energy will produce, deliver and sell heating, cooling and other energy products.

After Trump filed bankruptcy, Thermal filed several proofs of claim, including a $2.33 million general unsecured claim against Trump Taj Mahal Associates, LLC, a $476,634 503(b)(9) claim against Taj Mahal Associates, a $1.63 million general unsecured claim against Plaza Associates, a $339,053 503(b)(9) claim against Plaza Associates, a post-bankruptcy administrative expense claim against Taj Mahal Associates in a contingent and unliquidated amount based on the company’s proposed rejection of the Taj Mahal energy services agreement and a post-bankruptcy administrative expense claim against Plaza Associates in a contingent and unliquidated amount based on the rejection of its energy services agreement.

Under the proposed settlement, Thermal will have a $32.5 million general unsecured claim against Taj Mahal Associates and a $21.67 million general unsecured claim against Plaza Associates.

In addition, Thermal will have a $287,500 administrative expense claim against each of Taj Mahal and Plaza in exchange for their 503(b)(9) claims, and Taj Mahal and Plaza’s original administrative expense claims will be disallowed.

A hearing is scheduled for April 22.

Trump Entertainment Resorts, an Atlantic City-based owner and operator of casino resort properties, filed for bankruptcy on Sept. 9, 2014. The Chapter 11 case number is 14-12103.

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