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17Jul/10Off

Avenue Capital takes over Trump Entertainment Resorts: Casinos

On Wednesday, Avenue Capital Management was given the approval by the New Jersey Casino Control Commission, to own Trump Entertainment Resorts over a bid by investor Carl Icahn, who has filed an appeal against the decision. The bankruptcy reorganization of the company, which was formerly owned by Trump, was also approved by the New Jersey commission.

Buying distressed companies, turning them around and absorbing the profit is what Avenue Capital Management is well known. At least five years ago, they had planned to own the Entertainment Resorts and in equity, they are expecting a huge increase.

A majority ownership of 21.7 percent by Avenue Capital Management is included in the structure of the new ownership with Trump retaining 10 percent. 80 percent debt of the company’s bankruptcy proceedings are expected to be cut, from 1.8 Billion to 334 Million. Trump will remain “as involved as he wants to be”, stated a hopeful, CEO of Avenue Capital, Marc Lasry. Trump says he will remain as involved as allowed by his schedule.

Lasry has said that prior efforts from Avenue Capital will be made to sell one portion of Trump Entertainment Resorts, Trump Marina. He says that closing it is not a suitable option. If they are unable to find a buyer, they are ready to make additional investments, renovate and keep it. Trump Entertainment Resorts also owns Trump Plaza Hotel Casino and Trump Taj Mahal Casino, besides Trump Marina.