- Selloff May Be Coming, but You Don't Have to Join It
- PetroChina to Take Oil Sands Stake for $1.7 Billion
- Should Texting-While-Driving Be Illegal? See Our Debate
- Madoff SEC Report Ready, but Public Must Wait
- Bank Bailout Turning Out to Be Good Investment for US
- Buffett Talk Boosts Auto Maker's Stock—but Should It?
- The Other Big Threat to Microsoft (Besides Google)
- Apple Confirms iPod Event Coming in September
- Highest Grossing Movie Superheroes
- Point-Counterpoint:Texting While Driving
- Why Disney's Surprise $4 Billion Marvel Acquisition Makes Sense
- Warren Buffett's Desire to Hike Stake In Chinese Electric Car-Maker May Not Be New
- What Banks Are Really Doing With Foreclosures
- Market Still 'Statistically Very Cheap': Strategist
- Traders Making Bullish Bets on Sequenom
- Fasten Your Seatbelts - Here Comes September!
- Pros Say: Market to ‘Take Breather’ After Big Rally
- Apple Confirms iPod Event
MOST SHARED
- Exclusive: Favre, Vick At Top Of Jersey List
- What Banks Are Really Doing With Foreclosures
- ‘Viral’ the New ‘Synergy’? Most Annoying Buzzwords
- Disney CEO: Deal to Buy Marvel Good for Both Firms
- How to Get a $3 Million Mansion for Just $10
- Stock Pops & Drops
- Warren Buffett's Desire to Hike Stake In Chinese Electric Car-Maker May Not Be New
- Fed Can Avoid Inflation Danger: NY Fed President
Text Size 
Trump Entertainment Resorts' bondholders filed a motion Tuesday rejecting Donald Trump's plan to revamp the bankrupt casino company and are vying to submit a rival reorganization plan that offers them greater recovery.
Bondholders hope to terminate the company's exclusive right to propose and seek approval of a reorganization plan.
 |
CNBC.com Donald Trump |
In the motion, lawyers argued that Trump Entertainment [TRMPQ
Loading...
()
] did not craft its own plan and failed to explore options other than the plan proposed by Trump and BNAC, an affiliate of Beal Bank Nevada.
"The debtors' plan benefits two people, Andy Beal and Donald Trump, and ignores the legal rights of $1.25 billion of notes and all unsecured creditors by providing them with nothing," said the bondholders' representative, Kristopher Hansen with Stroock & Stroock & Lavan, in a statement.
The motion comes one week after Trump and BNAC proposed a deal to buy the company for $100 million and take it private.
Trump Entertainment said its management and board of directors supported the proposal.
Bondholders are seeking permission to submit their own plan, which they said was already drafted and financed.
Under this plan, they will infuse the company with $175 million in capital in the form of a rights offering bolstered by certain senior secured note holders.
The plan also includes a provision to sell the Trump Marina, one of the company's three properties in Atlantic City, to Coastal Development LLC for $75 million.
Hansen added that the rival plan "provides a recovery to all noteholders and all unsecured creditors and pays Beal Bank a significant amount of cash." Lawyers have also filed a motion to appoint an examiner to "investigate a number of issues concerning the conduct of the debtors before and during their bankruptcy," Hansen said in the statement.
Trump Entertainment was not available for comment. Trump Entertainment filed for bankruptcy protection in February as the recession and declining gambling revenues battered the casino industry.
The Chapter 11 filing marked the third plunge into bankruptcy for the company.
Data is a real-time snapshot *Data is delayed at least 15 minutes