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Former shareholders demand millions from Trump casinos

3 December 2008

ATLANTIC CITY, New Jersey -- As reported by the Press of Atlantic City: "Claiming they haven't received a penny in three years, a group of former Trump casino shareholders is demanding immediate payment of $4.1 million from a bankruptcy settlement between the gaming company and stock investors.

"The 17 shareholders filed a motion Monday asking the U.S. Bankruptcy Court to liquidate the three Trump casinos if they don't get paid within five days.

"Disputing the motion, a Trump lawyer said the shareholders sold their stock and simply are trying to use the courts to get money they don't deserve in the first place.

"...The legal dispute goes back to 2005, when Donald Trump's former gaming company, Trump Hotels & Casino Resorts Inc., went through Chapter 11 bankruptcy restructuring and emerged as a new corporation called Trump Entertainment Resorts.

"To win investor approval of the restructuring, Trump agreed to pay eligible shareholders a bankruptcy settlement that consisted of new stock warrants, $17.5 million in cash and $25.1 million from the sale of the old Trump World's Fair Casino site.

"The 17 former shareholders claim they should have been among the investors who reaped the rewards of that settlement but were wrongly excluded. Based on the number of Trump shares they once owned, they believe they should be paid a total of $4.1 million..."

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Former shareholders demand millions from Trump casinos is republished from Online.CasinoCity.com.