M&A

25 November, 2009

UPDATE 1-Beal Bank makes play for Trump casinos

* Offers to convert $386 mln loan for 65 pct stake in casinos

* Beal seeking $100 million cash payment (Adds Beal Bank attorney's comments)

NEW YORK, Nov 25 (Reuters) - Beal Bank has made a restructuring proposal for bankrupt Trump Entertainment Resorts' (TRMPQ.PK) Atlantic City casinos that would give it a 65 percent stake in the casinos company, the bank's attorney said on Wednesday.

Dallas-based Beal Bank introduced its plan about a week after Donald Trump abandoned his campaign to get back the properties bearing his name. [ID:nWNAB7728]

Beal Bank, which is owed around $486 million, offered a New Jersey bankruptcy judge and Trump Entertainment to convert $386 million of loans it made to the casinos into equity of the company, and receive a $100 million cash payment, attorney Thomas Lauria said.

Under Beal Bank's proposal, other creditors of Trump Entertainment would receive a 35 percent stake in the company, Lauria said.

Trump Entertainment was not available for comment. ((megan.davies@thomsonreuters.com ; +1 646 223 6112; Reuters Messaging: megan.davies.thomsonreuters.com@reuters.net))

Source: http://www.reuters.com