Under the agreement, Trump would have gone into bankruptcy court with a reorganization plan that would have included a $400-million cash infusion from DLJ, the private equity arm of Credit Suisse First Boston. Donald Trump himself would have co-invested a portion of that, most of it in the form of second priority mortgage notes due in 2010.
Trump himself would have had a greatly diminished role in the company had the deal cleared. While retaining the title of board chairman, he would have been removed from any executive role in the operation of the company, and his share of the ownership would have been reduced from 56% to just 25%.
One caveat at the time of the announcement was that one group of Trump Hotels bondholders had yet to sign-off on it. The bondholders were those invested in the Trump Marina property here and the Trump Indiana properties.
Failure to get all of the company's bondholders on board apparently gave DLJ cold feet as the negotiations continued, according to observers. Rumors in that regard had been flying since shortly after the deal was announced. DLJ could not be reached for comment.
While declining further comment, Trump Hotels and Casinos did release a brief statement which said, in effect, that the company and its bondholders were "pursuing the alternatives for a potential restructuring." One alternative indicated in the statement was that the struggling company might be taken private.
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