Trumps vs Icahn

Trump Entertainment owns the Trump Taj Mahal Resort, the Trump Plaza Hotel & Casino and the Trump Marina Hotel Casino. Icahn, 74, bought the bankrupt 2,100-room Tropicana Casino & Resort in Atlantic City last year by forgiving the $200 million in debt he had accumulated. Trump Entertainment noteholders claim that Icahn’s plan would wipe out their debt, giving them no recovery.
Donald Trump’s lawyers argued in a court hearing that the celebrity developer can pull his name off three bankrupt New Jersey casinos if rival billionaire Carl Icahn wins control of them. At stake in a two-week hearing in U.S. Bankruptcy Court in Camden that began yesterday is ownership of the Atlantic City resorts -- and who gets the right to use the Trump brand. “Icahn can’t get the benefits” of the name if he wins control of Trump Entertainment Resorts Inc., Trump attorney David Friedman told U.S. Bankruptcy Judge Judith Wizmur. He argued that bankruptcy law doesn’t allow Icahn to take over the personal-services contract that governs the Trump brand. Wizmur will decide who should be allowed to reorganize the company after hearing from Icahn, Trump and their advisers. Icahn appeared in the hearing yesterday in a video-taped deposition. Icahn attorney Jeffrey Jonas argued that his client has a better plan because it will allow Atlantic City-based Trump Entertainment to exit bankruptcy without any debt.
He also contended in court papers that Icahn will be able to take over the license for exclusive use of the Trump name for gambling purposes.