The Ballots Are In For Trump Casino Reorganization

The stakeholders in Donald Trump's beleaguered casino company have played their cards. They're face down for now, though.

Investors, institutions, and creditors who held bonds, stock or claims in Trump Hotels & Casino Resorts when it filed for Chapter 11 bankruptcy had until yesterday to turn thumbs up - or down - on his plan to reorganize.

Unsecured creditors, such as tradesmen and vendors owed money by Trump Hotels, won't get to vote on the plan; since they have been or will be paid in full for their claims, they are "unimpaired" under bankruptcy law and therefore have no stake in the vote, results of which may not be revealed until next month.

Trump Hotels, which runs three Atlantic City hotel casinos and a riverboat in Gary, Ind., filed for Chapter 11 in November, citing $1.8 billion in debt that has strangled Trump's ability to keep up and expand his casino properties.

The plan would keep the star of TV's "The Apprentice" on as chairman of the board and chief executive, but his ownership stake would be cut in half and bondholders would effectively take control of the company.

The plan also calls for a $500 million buy-in by investment banks Morgan Stanley and UBS, which would provide "exit financing" for the post-bankruptcy company - to be called Trump Entertainment Resorts - to begin addressing maintenance and expansion possibilities.

On April 5, Bankruptcy Judge Judith Wizmur in Camden is to preside over a confirmation hearing that will determine whether Mr. Trump's plan for the company is acceptable.

First, the three impaired classes of stakeholders had to vote.

Those stakeholders are made up of thousands of people and institutions holding $1.3 billion in Trump Atlantic City bonds, $500 million in Trump Casino Holdings bonds, or 44 million shares of Trump Hotels stock.

Their ballots were to be received no later than 4 p.m. Eastern Standard Time Monday.

Under bankruptcy law, the plan can be confirmed by the court if it is accepted by the holders of at least two-thirds of the dollar amount and more than one-half the voters in each class.

Even if they vote no, though, Ms. Wizmur could still approve the plan if she believes it's fair.