Icahn Appeals Trump Entertainments (TRMP) Bankruptcy Plan
Investor Carl Icahn has officially challenged the decision to award control of Trump Entertainment Resorts (TRMP: 0.00 N/A) three Atlantic City casinos to bondholders and Avenue Capital Group.
Icahn filed an appeal on Monday, challenging the Judge’s ruling.
“The court erred in several key respects with respect to one of the most central issues in the nine-day confirmation hearing; namely, whether the AHC/Debtor Plan is feasible,” attorneys for Icahn and Beal said.
Icahn is questioning whether the company will have enough money to “to survive beyond a few months” claiming that Trump Entertainment fell $6.6 million short of its projected first quarter revenue.
Trump Entertainment filed for bankruptcy in February of 2009 after struggling with a heavy debt load and losses in gaming revenue, however the Judge ruled in their favor because the plan would allow investors to recover some equity, although Icahn’s plan “was more feasible” and “would eliminate Trump Entertainment’s debt”.
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