Donald Trump vs. Karl Icahn in Atlantic City
While the rest of the world gets ready for the upcoming Pacquiao vs. Clottey fight, two big names in the world of business are duking it out already in Atlantic City. It's Donald Trump vs. Karl Icahn.
Michael Kaplan of Daily Finance:
When Trump first opened Trump Plaza in Atlantic City in 1984, he had majority ownership. But Trump Entertainment Resorts (TRMPQ) has filed for bankruptcy three times. In February, Trump resigned from the company, just before its third filing. Bankruptcy hearings are underway in nearby Camden, to determine who gets to own and run the properties.
Enter corporate raider Karl Icahn, who Trump does not want to see take over his properties.
It was announced on Thursday that Icahn, who once ran Trans World Airlines (some say into the ground), will be taking over the Tropicana in struggling AC.
"Carl Icahn's return to the business of gaming in New Jersey certainly brings ... signs of rejuvenation and optimism in the market," Sharon Anne Harrington, the commission's vice-chair, said in a statement.
The New Jersey commission in December 2007 appointed a conservator to oversee the Tropicana after voting not to renew the casino's license amid complaints about hotel operations and compliance with gambling regulations.
From Daily Finance:
Trump's proposed reboot carries no hint of a sale. His plan -- which is preferred by casino management, unionized workers, and most of the bondholders -- will have bondholders kicking in $225 million to get things going again, and Trump himself receiving up to 10% of the company in exchange for staying involved.
Gros figures that, beyond the 10%, Trump's interest entails protecting the perceived value of his name. Indeed, having the name Trump on a failed casino is hardly an asset. "Outside of Andy Beal, most of the creditors also think there's value in the name," Gros says. "Personally, I think it's worn out."
Trump has already made it abundantly clear that his name will be removed from the property should Icahn take control.
Jagajeet Chiba, Gambling911.com
