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Judge Approves Trump's $100 Million Loan

NEW JERSEY – As reported by the Press of Atlantic City: "Donald Trump's casino company on Wednesday submitted its formal plan for emerging from bankruptcy and also received approval for a $100-million cash infusion to keep its three Atlantic City gaming halls operating without interruption.

"Facing few serious challenges, Trump Hotels & Casino Resorts Inc. has been moving through the bankruptcy process at warp speed and expects to complete its $1.8-billion corporate restructuring by March - only five months after filing for Chapter 11 protection from creditors.

"Marking a major milestone, the company submitted its disclosure statement and plan of reorganization in U.S. Bankruptcy Court on Wednesday. The telephone-book-thick document serves as a blueprint for restructuring the company's debts, paying off creditors and pulling it out of bankruptcy.

"In a related development, Trump Hotels was granted final court approval Wednesday for a $100-million loan from Dallas-based Beal Bank. The money will be used to pay employee salaries, vendors and other expenses at Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino and Trump Marina Hotel Casino.

"…Although [Bankruptcy Court Judge Judith H. Wizmur] expressed concerns about some financial and legal matters, she gave the go-ahead for the bank loan after being assured by attorneys for Trump Hotels and the company's bondholders that progress was being made on the reorganization plan.

"…Trump will remain the largest individual shareholder, but will see his ownership stake cut from 56 percent to 27 percent. He will also have to invest $71.4 million of his own money in the restructured company. Moreover, he will continue as chairman and chief executive officer…"

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