December 01, 2009 3:41 AM
by Ray Poirier
When Donald Trump was desperate for cash to keep his casino operations in business, he turned to his friend Andy Beal, the wealthy banking and real estate tycoon in Texas.
So, when Trump Entertainment Resorts Inc. filed for bankruptcy, Donald got his buddy Andy to join him in making a $100 million bid for the company. Even coupled with Beal Bank’s debt holdings of $386 million, the bid was far less than bondholders were ready to accept.
Frustrated, Donald and his daughter, Ivanka, who also had an investment in Trump Entertainment, decided to end the fight and join the competition. Trump withdrew his offer and made a deal with the debt holders to retain a 10 percent interest in a restructured company.
That left Andy Beal holding $386 million in loans that his bank made to the company.
Looking to retrieve some of that cash, Beal Bank made a restructuring proposal to the bankruptcy court that would give it a 65 percent stake in the new company. Under Beal’s plan, other creditors of Trump Entertainment would receive a 35 percent stake.
There has been no comment from Donald Trump.
In addition to being a successful banker and real estate magnate, Andy Beal is also noted as a mathematician and a world-class Texas Hold’em poker player.
Some three years ago, he became known as the player who won the most money in a single day – more than $11 million – playing some of the best known Texas Hold’em cash players in head-to-head contests. However, according to reports, he ended up losing it all to Phil Ivey, plus another $3 million, before finally ending the contest.