Trump DIP gets interim approval, files reorganization plan

By Jeff Pines

Washington, Dec. 16 - Trump Hotels & Casino Resorts Inc.'s proposed $100 million debtor-in-possession financing facility received interim approval, according to a Wednesday order with the U.S. Bankruptcy Court for the District of New Jersey.

Beal Bank will provide the facility, which has an interest rate of Libor plus 150 basis points.

The hearing for final approval is scheduled for Jan. 4.

Trump Hotels also filed its disclosure statement and reorganization plan with the court.

According to the plan, holders of $1.3 billion of Trump Atlantic City notes would get cash, the proceeds from the sale of warrants, a share of $777.34 million in new 10-year 8.5% senior second priority mortgage notes and portion of 26.33 million of new common shares. The total amount of cash would be based on the interest on $777.3 million of new notes at 8.5% from the last payment on the Trump Atlantic City notes to the effective date of the plan.

Trump Hotels plans to issue warrants to buy up to 3.4 million shares for $50 million, or $14.60 per share.

Trump Atlantic City noteholders can choose to get more notes and fewer shares or more shares and fewer notes. If they choose to receive more notes, they would get $893.56 per $1,000 of notes. If they chose to take more stock, they would get 61.21 shares per $1,000 of principal.

Trump Casino Holdings first priority note claims would get cash from the first distribution, $425 million of new notes, a share of $21.25 million in cash and a share of 582,283 new shares. The first cash distribution is determined by the 12.65% interest on the notes from the last payment of interest to the effective date of the plan.

Trump Casino Holdings first priority noteholders could also choose to take more cash, $70 per $1,000 of notes, and fewer shares, or more shares, 4.8 shares per $1,000 of notes, and less cash.

Trump Casino Holdings second priority noteholders would get cash from the second distribution, a share of $2.32 million in cash, a share of $47.66 million in new notes and a portion of 145,116 new shares. The second distribution is the cash from the interest accrued on $54.6 million of 18.625% notes from the date of the last payment to the effective date of the plan.

The plan calls for the company to get a $500 million exit facility through Morgan Stanley Senior Funding Inc., UBS Loan Finance LLC and UBS Securities LLC.

The disclosure statement hearing is scheduled for Jan. 21.

Trump Hotels & Casino Resorts filed for bankruptcy on Nov. 22. Its Chapter 11 case numbers are 04-46898 to 04-46925.

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