Carl Ichan, one of the investor giants is on a new venture. He has set his mind to seize yet another well known company, a few actually, Donald Trump’s three Atlantic City casinos. The main concern for Trump is the value and familiarity associated with the Trump name. Who will win the battle?
Trump’s plan is that the bondholders would contribute $225 million to start the companies, management would not change and the Trump name would not change. His daughter, Ivanka and he would hold 5 percent from the company earnings. This should ensure the courts that with their involvement the company was sure to prosper, rather than Icahn who they believe wants to make a short term profit and is only bound to run the company in to bankruptcy in a short amount of time.
Ichan bought Atlantic City’s Tropicana Casino & Resort out of bankruptcy for $200 million. He wants to merge Topicana with Trump’s casino that is the case turns out in his favor. His attorney, Jeffrey Jonas stated that the company will acquire $600 million in equity, while Trump will only lead the company back into bankruptcy for the third time.
Trump will not allow Icahn to continue the use of the Trump name. He says the brand name has received an appraisal of $3 billion. However, he will allow the bondholders to continue the use of his name and his daughters name in East Coast states for 10% of the company. Icahn has responded that the only reason they are not changing the name is because it would cost him $15 to $20 million to change the sign’s on the casinos.
The battle has begun many investors’ money is at stake here. Whose hands will the company fall into and who will best serve their bondholders and shareholders?
We will have to wait and see who will win this tug of war over the casino’s that carry the Trump name. Will it be billion dollar investor, Carl Icahn or Donald Trump the billion dollar celebrity real estate developer? Judge Judith Wizmur is assigned to the case and will decide based on the best interest of the company’s creditors.
Contributor, designer & admin for JohnHart Gazette.
More people should aspire to learn from Donald Trump…his businees acumen is 2nd to none!
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