|By Brendan Case,, The Dallas Morning
NewsMcClatchy-Tribune Regional News
January 1, 2009 --Investor Carl Icahn is offering to loan Trump Entertainment Resorts Inc. $45 million and guarantee an equity investment of as much as $80 million as part of his bid to take over the bankrupt casino company.
Icahn and Trump Entertainment lender Beal Bank, which is based in Plano, provided more details in court papers this week of their plan to buy the company, which is restructuring in bankruptcy court.
Icahn is competing with bondholders backed by Donald Trump for control of Atlantic City, N.J.-based Trump Entertainment. Each side claims the other would have a difficult time getting regulatory approval from gaming officials.
The bondholders don't have enough experience in gaming to guarantee they would win approval, Icahn and Beal said. Should regulators reject the bondholders' license request, Trump Entertainment's employees and creditors would suffer "all of the economic harm," Icahn and Beal said.
Andy Beal, founder and president of Beal Bank, said the plan was "the best and fairest plan for all parties involved."
Bondholder attorney Kris Hansen said regulators might reject Icahn's license application because it would give him too much influence over Atlantic City gaming. Icahn bought Tropicana Casino & Resort out of bankruptcy in June by forgiving $200 million in debt.
"Given the contraction in the Atlantic City market, Icahn's possible control becomes even more exaggerated," Hansen said.
Beal said his and Icahn's proposal would help Atlantic City.
"Carl is a hands-on operator with extensive experience operating casinos, and he has extremely deep pockets," Beal said. "Carl's involvement ... will provide the best long-term job security to the thousands of hardworking people employed by these three casinos."
U.S. Bankruptcy Judge Judith Wizmur scheduled a court hearing in which she will decide between offers. Brendan Case, staff writer,
and Steven Church, Bloomberg
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