The approval of disclosure materials explaining
A hearing had been scheduled for last week to consider the approval of disclosure materials explaining a plan under which Icahn would take ownership of the casinos mostly in exchange for debt. The official unsecured creditors’ committee objected, saying it had been denied documents related to Icahn’s efforts to boost his Atlantic City casino holdings beyond the Tropicana Casino & Resort which he bought out of bankruptcy in 2010.
Icahn agreed to turn over more information. As a result, the disclosure approval hearing was rescheduled to Jan. 28. That will also be when a bankruptcy judge considers the approval of a $20 million loan Icahn offered to keep the 2,000-room Trump Taj Mahal operating.
Trump Entertainment filed for Chapter 11 protection in September. By then, the 906-room Trump Plaza had already closed.
Icahn and his related entitles are dominant holders of $285.6 million in first-lien notes to be exchanged for ownership under the plan.
The creditors’ committee is opposed to the plan because it only offers unsecured creditors $1 million in cash and the right to file specified lawsuits, for a recovery of less than 0.5 percent on unsecured claims, which may be more than $232 million.