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Last Updated: Tuesday, 5 April, 2005, 19:23 GMT 20:23 UK
Trump Hotels out of bankruptcy
Donald Trump
Mr Trump is to stand down as chief executive of Trump Hotels
The flagship company of businessman Donald Trump is to exit bankruptcy, in a move which could save it $98m (52.2m) in annual interest.

Trump Hotels & Casino Resorts had gone into Chapter 11 protection as it tried to restructure $1.8bn (969m) in debt.

Chapter 11 protection gives businesses time to rearrange their finances while continuing to trade.

On Tuesday, bankruptcy judge Judith Wizmur approved the restructure plan, in the form of a debt-for-equity swap.

In October 2004, Mr Trump struck a deal with bondholders that would cut his stake in the firm, but preserve his role as chairman and chief executive.

However, under the terms of the new deal he will now step down from the latter role, and his stockholding will be about 30% of the company.

'Recapitalisation plan'

The company, which filed for bankruptcy last November, now expects to emerge from bankruptcy in 30 days.

The court announcement comes a week after rebel shareholders withdrew their opposition to the reorganisation plan.

As part of the plan, Trump Hotels would pay $17.5m to the 20,000 "unaffiliated common stockholders".

Shareholders will also receive proceeds from an auction of the World's Fair site in Atlantic City, New Jersey.

"We are pleased to have reached an agreement with the equity committee which provides additional value to our shareholders and facilitates the execution of the company's recapitalisation plan," said company president and chief operating officer, Scott Butera, about the new deal.

"The company's plan now has overwhelming support from its major equity and fixed income stakeholders."

Second comeback

Mr Trump - or "The Donald" as he prefers to be known - was both famous and notorious during the heyday of 1980s takeover capitalism.

In recent years, he had success with the television series The Apprentice, where he teaches young and eager would-be managers how to run a company.

It is the second time Mr Trump's casino empire has emerged from bankruptcy protection.

In 1992, Trump's Atlantic City casinos filed for Chapter 11 after buckling under the weight of $1bn in debt. He later regained control of those properties.




SEE ALSO:
Trump Hotels files for bankruptcy
22 Nov 04 |  Business
Trump Hotels planning bankruptcy
10 Aug 04 |  Business


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