Trump bests Icahn in battle for bankrupt Atlantic City casinos

April 13, 2010 09:41AM

A bitter, 14-month legal battle over control of three Atlantic City casinos bearing the Trump brand ended in the Donald’s favor yesterday when a U.S. bankruptcy court rejected a takeover plan by billionaire investor Carl Icahn. Donald Trump’s plan, backed by a group of bondholders who are owed $1.2 billion and Marc Lasry of Avenue Capital Group, gives Trump a 10 percent stake in Trump Entertainment Resorts, reduces the company’s debt by $1.4 billion and allows the casinos to keep using the Trump name. During the court battle, Trump had said he would pull his name from the casinos if Icahn’s plan won. Avenue Capital will also contribute an additional $225 million to the casinos’ operations. Trump heralded the ruling, calling it a “great victory for Trump” and “a great loss for Carl Icahn.” He added: “I was surprised he attempted what he attempted but that’s OK. It’s fine.” [Bloomberg]