The Trump casino bankruptcy in winding down to a close as two opposing parties battle to gain control of the bankrupt company. Billionaire Carl Icahn and banker Andy Beal are at a standoff against bondholders as both parties struggle for control over the Trump casinos and present their bankruptcy exit plans to bankruptcy Judge Judith H. Wizmur. Both parties presented their closing arguments to the bankruptcy judge.
"What we're doing here is reducing the debt by a substantial amount, to a level that the company can handle," Trump Entertainment attorney Michael Walsh said in his nearly two-hour closing remarks. "Mr. Icahn just saw a bargain here."
Walsh said Icahn had neither a strategic vision for the casinos nor the support of the noteholders, the majority of whom voted for the bondholders/company plan, which would inject $225 million in equity into the firm and guarantee the continued use of the Trump name on the casinos.
"This company is burning cash," said Icahn lead attorney Jeffrey Jonas in his closing remarks. "It will continue to burn cash."
Jonas argued that the Icahn plan would offer $484 million to pay off first-lien notes in exchange for 100 percent equity of the firm and would completely deleverage the firm.
Regardless of which bankruptcy exit plan the bankruptcy judge approves, one thing is for certain according to some analysts, at least one of the Trump casinos will be sold off due to its exceptionally poor performance. Trump Marina which experienced a 29.1 percent revenue drop from a year ago isn't likely to survive and remain a part of the Trump casinos post-bankruptcy.