Fattened offers follow Trump talks

Oct 13, 2009 1:52 AM
Industry Insider by Ray Poirier |

If nothing else, all the talk emanating from the two principals looking to take Trump Entertainment Resorts (TRMP) out of bankruptcy, has gotten both sides to increase their bids.

Donald Trump and his daughter, Ivanka, and their partner, Dallas-based Beal Bank, offered to pay bondholders $13.9 million in cash, making their total bid $113.9 million.

The bondholders responded by boosting their offer by $50 million to $225 million. They explained that they wanted to address concerns created by a failed takeover plan for Trump Marina Hotel Casino. Of course, bondholders already have an investment of $1.25 billion in the bankrupt company.

The next hearing won’t be until Jan. 20, 2010, a date set by Judge Judith Wizmur after she had rejected requests by Donald Trump’s lawyers seeking to knock the bondholders out of the running.

Speaking for Trump Entertainment, CEO Mark Juliano said he felt there were crucial differences in the way the two bidders had structured their proposals.

"You have to look at how much money is staying in the company for the company to use. Some of the money the bondholders put up is paying down Beal debt, which wouldn’t be available for us to use," he explained.

The Trump-Beal offer, he added, would provide $100 million for the company to use.