Earlier this year, Carl Icahn acquired 51% of bankrupt Atlantic City casino operator Trump Entertainment Resort's $486 million in senior, secured bank debt, setting himself up for a battle with The Donald over his reorganization plan for a company that has now been in bankruptcy three times.
Trump's plan would give him a 10% equity stake in the new company, but Icahn says it won't work. According to Icahn's comments in court papers, allowing Trump's plan to sail through would lead to a re-leveraging of the company, and would set it up for a fourth appearance in bankruptcy court.
Trump told The New York Post that Icahn "runs companies so badly that I think it'd be really bad for the company if he took over."
Icahn's retort: "I purchased the Stratosphere in Las Vegas out of bankruptcy for $300 million in 2000, cleaned it up and sold it one-and-half-years later for $1.3 billion . . . I don't notice the same record at the Taj which went bankrupt three times under Donald's stewardship."
Oh boy.
Something tells me this battle is just getting started. Two larger-than-life personalities engaged in a death match for the rotting corpse of Atlantic City. Who will win? The veteran takeover-king or the brash, media icon who is now making headlines trying to sell vitamins?
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Reader Comments (Page 1 of 2)
12-21-2009 @ 5:54PM
hookmrl said...
oh no not mr greed and ego trump,what a jerk this guy is
12-21-2009 @ 7:15PM
Ashley Simpson said...
Trump needs to stop wasting taxpayer time and money! All his subsidies and increment financing are wasted. Three bankruptcies is a joke! Tie the new corporate debt to Trump personally and watch a new attitude develope. Scientifically I don't know how the Earths orbit doesn't go off balance from Trumps large ego sized head!
12-21-2009 @ 7:17PM
sgentilejr said...
The Atlantic City Casinos lost 20% of their "good" high roller customers when the State of NJ banned smoking in the Casinos. It would have been far better for the casinos and the State of NJ tax collectors if the casinos were allowed to wall off a smoking and a non-smoking area and improve their ventilation systems. Having the casinos go bankrupt and close down one after another benefits no one and costs thousands of people their jobs..
12-21-2009 @ 7:35PM
csr said...
Atlantic City has much competition from casinos in PA and Delaware, and has to change its ways. It needs to bring in 'good' Las Vegas style shows, drop the outragous food prices, and pass a few dollars back to the players by resetting the slot machines. As for smokers, there are in some casinos separate smoking areas for those that wish to use the areas. The other problem with AC is the parking, which is scarce in the downtown area.
12-22-2009 @ 11:34AM
Duke said...
It was and is still more fun to hear the Donald trash talk Rosie O'Donnell. I miss him cutting the queen of mean to shreads.
12-21-2009 @ 7:43PM
csr said...
Additionally, the city of Atlantic City originally allowed the casinos into the beach / boardwalk area with the promise that the casinos would hire a percentage of the city's people who were mostly poor or uneducated. This DID NOT happen, has not happened, and is a SORE spot with much of the local population. Most who travel to AC do NOT venture off the boardwalk into the city's streets in fear of the consequences of the casino's rejection of the people who should have, but did not benefit from their decision to allow the casinos. Shades of Cuba.
12-21-2009 @ 8:36PM
mommc732 said...
the casinos in ac do not get it!!!!!!!! talk to the people who go. they are tired of having tight machines that do not payoff or give decent play'= go inteview the average player.
12-21-2009 @ 10:18PM
dang1067 said...
HEADLINE: "Donald Trump Battles Carl Icahn over Atlantic City"
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Icahn, is gonna win... Icahn has more money!
12-21-2009 @ 10:44PM
jaycee said...
Hey Zac..."rotting corpse" of Atlantic City? Bad choice of words--obviously, u don't have a clue! Before the economy took a turn for the worst last yr, Atl Cty was doing exceptionally well. I know as I work there! (29 yrs) It's still bringing in the $$$--the wknds show no signs of a recession. The smoking ban should've stayed as folks were fine going off off to a room to light up. Unfortunately, it occured the same time when the economy hit bottom..casinos blamed it on the smoking ban....wrong! Vegas is hurting too--are they also a "rotting corpse?" Before u make comments such as this, do ur job & investigate. Icahn or Trump..both mulit-millionaires are bidding for a "rotting corpse?" U fool!
12-22-2009 @ 12:06AM
Toni Mendick said...
I agree with Jaycee... "a rotting corpse" is a poor choice of words to discribe Atlantic City. I worked in the casino industry for more that 25 years. I still live in the area. It is a great place to visit and a great area to shop. We have all raised our families in the area and have benefitedfrom the casinos being here. If you wanted to work, you could get a good job in any casino. It is true it is tougher now to get a job in the industry for several reasons. Please don't bad mouth Atlantic City. We love our town.
12-22-2009 @ 12:26AM
Uuuugghhhh said...
Reading these comments really does shed some light on the psycology of the contributors.
sgentilejr - clearly is a smoker and feels betrayed by a society that told him/her that smoking would make people like you and now that most places does not allow smoking he or she feels ripped off.
csr - is clearly someone who was either passed over for hiring at one of the casinos or was let go. forgets that casino dealers and cocktail waitresses make very good money for the little to no education it takes to aquire those jobs.
mommc732 - just like my mom. another angry slot player. everything would be better if they just loosen up those slots some more. they have never thought of that. loosen the slots and the red ink turns black...i think with all the years of opperating casinos this has been tried. if it worked, it would be done. casinos are very greedy - as capitalism should be - so they will do whatever earns them the most money. including hiring people who understand gaming to determine if looser slots would fix the problems. thanks mom.
jaycee - does not understand the comments section of an article. it is not anyones "job" to research a topic before posting a comment on it. you didn't. why should he/she. AC is a bit of a rotting corpse. destination casinos are popping up all over the place. each one takes a little more business from AC. Without the casinos I dont see too much reason for tourists to go there. So that leaves industry. Other than illegal industries, not much stands out to me.
Ahh, well this comment was really just to stroke my ego and some moderator will snatch it off the site soon, but you have to admit. I'm right.
12-22-2009 @ 12:34AM
Tommy said...
csr: You hit the nail on the head! The casino owners and the State of NJ made promises to the residents of AC that they had no intention of keeping. The boardwalk is a sad collection of horribly tacky souvenir shops and the downtown looks very bad. Also,with the poor payout rate of the slots and the overpriced(bad)food, there is very little fun to be had in that hole! No-smoking is the least of their problems.
12-22-2009 @ 6:09AM
stillmanbd said...
I think the Donald sounds a little bit senile. I honesly thinks w/every hair he loses he lose 100 brain cells.
It seems to me like right now the Icahn has him by the very short hairs and he oughta learn to shut his big egotistical mouth before it costs him everything.
12-22-2009 @ 7:23AM
peter said...
money is on icahn, cause he is a crook, and trump is all gloss no substance.
12-22-2009 @ 7:56AM
Rock Fossil said...
Its a Tale of 2 Cons, 3 Bankruptcies and a Partridge in a pear tree!
12-22-2009 @ 3:19PM
Lee said...
I am sick and tired of people taking unwarranted, cheap shots at AC! Some facts: the casinos in Las Vegas are off way more than the ones in AC but no news articles are calling them "rotting corpses". The restaurants in AC have some of the best food I've ever tasted (but yes, it is expensive). The shopping and entertainment including live bands, comics, shows and headliners is top notch.
As far as DE. and PA. casinos taking business away from AC, have you people ever been to these dumps? I went to several and #1, they're empty, #2, they are mostly old converted buildings with rows of slots, a cafeteria-like buffet with horrible food and some fast food outlets. No decor, no class, no decent shopping and no entertainment at all. They provide a shorter drive to the slots for locals and nothing else.
I love AC and go there every month or two. Depite news reports to the contrary, the casinos are packed on the weekends. If they are in financial trouble, it is the result of mismanagement and not lack of incoming revenue. Sure Vegas is bigger and better but you can't find a better gaming town on the East coast.
12-22-2009 @ 2:28PM
jnzcram@aol.com said...
This should be interesting two money making vultures at each others throats trying to make even more money.
12-22-2009 @ 2:40PM
nikiclark405 said...
Mr Trump. You take peoples money, and file bankruptcy. You are a ROTTEN OLD MAN. You are a thief. He Orders stuff then dont pay the people that do his PRINTING!! to be exact, files for his Bull Crap, and lets peoples business go down The Drain. THE DONALD should Flip off and freaking DIE!!! what a waste of WHITE SKIN!!!!!! the low life Mofo he is.. I HATE THE MAN AND I WISH HIM ALL THE BADNESS THERE IS, HE NEEDS TO LEAVE OTHERS ALONE.. "THE DONALD" WHO THE HECK GAVE HIM THAT NAME?? HIS PROUD HOOKER GIRLFRIENDS???
I HATE YOU DONALD EAT S++T AND BARK AT THE MOON
12-22-2009 @ 2:49PM
Donna Schra said...
Well, I have noticed one thing about Trump after seeing a photo of his youngest son (haven't seen one since he was very little), he parents some very good looking children, and it seems, ones who have manners and educations and know how to work and not depend on rich Daddy for their living. He can't be all bad!
12-22-2009 @ 2:58PM
phil said...
Bill Gates should just buy them both and put them out of our misery.