International edition
September 25, 2021

The court ruled in December that each could submit his own reorganization plan

Donald Trump and investor Carl Icahn locked in battle for New Jersey casinos

(US).- Celebrity real estate developer Donald Trump and investor Carl Icahn are trading jabs in court documents ahead of a face-off in bankruptcy court next week that could determine the fate of Trump's namesake Atlantic City hotel-casinos.

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n documents filed late on Tuesday, Trump said Icahn could not make last-minute changes that might allow him to use the Trump brand as part of his proposed reorganization plan for Trump Entertainment Resorts.

Meanwhile, Icahn said that Trump and his daughter Ivanka should not be able to vote on Icahn's reorganization plan for the company, which is also backed by lender Beal Bank. The two New York businessmen have been lining up for a battle over the Atlantic City, New Jersey, properties since the court ruled in December that each could submit his own reorganization plan.

U.S. Bankruptcy Judge Judith Wizmur is expected to hold a hearing on the competing plans in U.S. bankruptcy court in Camden, New Jersey, next week. Trump Entertainment filed for Chapter 11 bankruptcy in February 2009. Trump is backing a plan filed by the casinos' bondholders that would give him a small stake in the company and keep his name on the casinos.

In January, Icahn bought a large chunk of the casinos' debt and, along with poker player Andrew Beal, filed a competing reorganization plan for the company. Beal also founded Plano, Texas-based Beal Bank. At issue for Trump, who is working with the company's bondholders on his own plan to reorganize the business, is the future use of his brand name on the Trump Taj Mahal, Trump Plaza and Trump Marina.

Trump argued in court documents that Icahn has explored no other branding possibilities for the properties and should not be able to make last-minute changes to his reorganization plan that might let him use the Trump name.

"Beal has acknowledged that the Trump brand is essential to the debtors' ongoing viability," Trump's lawyers wrote in court papers. "In contrast, Trump has consistently asserted that the trademark license agreement has been terminated and, in any event, cannot be assumed without his consent."

The Trumps have argued they may have claims in excess of us$ 100 million stemming from an alleged breach of his trademark licensing agreement with the casinos and have been seeking the right to vote on the Icahn/Beal plan. Icahn and Beal argued on Tuesday that Trump's claims are invalid and would put other creditors at a disadvantage if he and his daughter were allowed to vote.

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