Donald Trump blasted Trump Entertainment Resorts Inc.’s bondholders’ attempt to derail a restructuring plan that would see the company emerge from bankruptcy protection under control of its namesake.
A group of bondholders owning more than 74 percent of the company’s second-lien notes have asked the court to end Trump Entertainment’s exclusive control of its case so that they can offer their own exit plan.
Those bondholders, calling themselves the ad hoc investor group, are asking the court to appoint an outside official to investigate Trump Entertainment’s conduct during the bankruptcy case.
But Donald Trump’s attorneys rebuffed the bondholders’ request, calling them “disgruntled bidders” with “entirely unproven allegations,” according to papers filed Friday with the U.S. Bankruptcy Court in Camden, N.J.
“Without a shred of evidence, the ad hoc investor group has simply flung as much mud against the wall as its word processors could generate,” Trump attorneys said in court papers.
The company and its primary lender, Beal Bank, joined Trump in urging the court to shoot down the bondholders’ demands.
A hearing on the bondholders’ requests is scheduled for Thursday.
Trump Entertainment proposed a bankruptcy-exit plan this month backed by Donald Trump and Beal Bank. In that deal, the bank would offer new financing at lower interest rates and join Trump in investing $100 million in the casinos in exchange for control of the company.
The plan would leave unsecured creditors, including the bondholders owed $1.25 billion, with nothing.
