Trump Entertainment Resorts Chapter 11 plan effective as of Feb. 26

By Caroline Salls

Pittsburgh, Feb. 26 – Trump Entertainment Resorts, Inc.’s amended Chapter 11 plan of reorganization took effect on Friday, according to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on March 12, 2015.

As previously reported, the amended plan reflects an agreement in principle reached with Trump’s first-lien lenders to equitize its existing senior secured debt, eliminating $38 million of payments.

In addition, the first-lien lenders agreed to invest $13.5 million through a new term loan to repay debtor-in-possession loan obligations and specified administrative and priority claims and to finance the ongoing working capital and other general corporate purposes of the reorganized company.

This financing will allow the Taj Mahal to remain open, according to the amended disclosure statement.

Specific treatment of creditors under the plan includes the following:

• Holders of secured claims and allowed priority non-tax claims will be paid in full in cash;

• Holders of first-lien credit agreement claims will receive 100% of new common stock to be issued upon the plan effective date on a fully diluted basis;

• Holders of general unsecured claims will receive a share of class A or class B distribution trust interests, based on whether they exercise an opt-out election; and

• Holders of securities law claims, subordinated claims and existing company interests will receive no distribution under the plan.

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

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