A Dallas bank that was once partnered with Donald Trump in a bid to acquire the three Atlantic City Trump Casino facilities out of bankruptcy protection now wants to acquire them on its own.
Beal Bank offered on November 25th, 2009 to convert its $486 million loan to the casino facilities into equity in Trump Entertainment Resorts.
The decision came a week after Donald and Ivanka Trump, who made a joint bid earlier this year with Beal Bank to acquire the company, withdrew their support for that agreement and instead supported a bid by bond holders to acquire the company.
Donald Trump would get 10% of the company if that buyout plan prevails. Beal Bank's bid surfaced in a conference call on Wednesday with a bankruptcy court judge in New Jersey. Mark Juliano, Trump Entertainment's Chief Executive Officer said that the judge asked both parties to come to an acceptable agreement and that is what they are going to try to do. He added that they continue to hope that they have enough in common with Beal Bank.
Beal Bank refused to comment on the issue. Juliano said that another hearing on the issue is set for next Thursday, December 4th, 2009. Donald and Ivanka Trump, who both resigned from the company's board two days before it filed for Chapter 11 bankruptcy protection in February 2009, tried to acquire the company themselves and make it private.
They were offering $114 million with Beal Bank and were locked in a battle with bondholders for the overall control of the company. Before the Trumps switched sides, the bondholders had increased their offer to $225 million.
Trump Entertainment had favored Donald and Ivanka Trump's plan, stating that it would leave the organization with more money to work with and that the bondholders' plan used too much money to pay down the debt.
The company owns three Atlantic City casino facilities: Trump Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino.
12/21/2009 05:17 PM