n a statement filed Tuesday in U.S. Bankruptcy Court, Icahn Partners Inc. committed another us$ 125 million toward propping up struggling Trump Entertainment Resorts Inc.
Trump Entertainment filed for Chapter 11 protection in February, the third such filing for the company and its corporate predecessors. The company's struggling with crushing debt was exacerbated by a sour economy and competition from slots parlors in Pennsylvania and New York that have lured away some Atlantic City regulars.
Under the proposal advanced Tuesday, Icahn would provide us$ 45 million in immediate, short-term financing and would guarantee us$ 80 million to Trump in the event Icahn doesn't raise a projected us$ 225 million from other investors through a rights offering. "Icahn Partners is 'putting its money where its mouth is' and demonstrating its level of confidence and commitment," the company said.
Trump bondholders have offered us$ 225 million for the casinos in a deal that would give Donald Trump a 10 % stake in the reorganized company. The company's board supported that plan in December but hasn't reached a final agreement. Icahn Partners claims in its filing that the bondholders' plan might not win regulatory approval and delaying a purchase could hurt what it called "this already very fragile company."