Wednesday January 21,2015 : MORE DELAYS IN ATLANTIC CITY CASINO BANKRUPTCY CASE
Unsecured creditors committee complaint over denial of access to relevant documents.
Carl Icahn's offer to save two Trump Entertainment Resorts land casinos in Atlantic City from bankruptcy has suffered yet another delay whilst an unsecured creditors’ committee is given an opportunity to study documents relating to his proposal.
The committee complained that it had been denied documents concerning Icahn’s efforts to boost his Atlantic City casino holdings, and a new date of February 13 has now been set to give them time to consider the offer on the Trump Taj Mahal and the now shuttered Trump Plaza.
According to a Bloomberg report Tuesday, a hearing had been scheduled last week to consider the approval of disclosure materials explaining a plan under which Icahn would take ownership of the casinos, mostly in exchange for debt.
Icahn has apparently agreed to make more information available.
Meanwhile, a hearing on January 28 will consider the approval of a $20 million loan Icahn has offered to keep the Trump Taj Mahal operating.
Icahn and his related entitles are dominant holders of $285.6 million in first-lien notes to be exchanged for ownership of the two Trump casinos under the plan.
The creditors’ committee is opposed to the plan because it only offers unsecured creditors $1 million in cash and the right to file specified lawsuits, for a recovery of less than 0.5 percent on unsecured claims, which may be more than $232 million.