ATLANTIC CITY, NJ-Donald Trump will retain the position of chairman and CEO at Trump Hotels & Casino Resorts as part of the complex restructuring of the company. Trump announced that he and a majority of bondholders had reached agreement on a reorganization effort.

The support agreement contemplates that the company would beginreorganization proceedings by late November and that the plan itself would be confirmed by mid-April 2005 and consummated by May 1, 2005. The Company intends to arrange for up to $100 million interim financing during the proceedings.

As part of the plan, Trump will invest approximately $71.4 million into the recapitalized company. That investment will consist of a $55 million cash equity investment and the conversion of approximately $16.4 million principal amount of TCH Second Priority Notes owned by him into shares of the recapitalized Company’s common stock. He is expected to remain the largest individual stockholder of the company with approximately 27% of the company’s common stock.

The plan calls for an approximately $400 million reduction in the company’s indebtedness with a reduced interest rate of 8.5%, representing annual interest expense savings of approximately $98 million. The plan also permits a working capital facility of up to $500 million secured by a first priority lien on its operating assets such as the Trump Taj Mahal, Trump Plaza and Trump Marina casino/hotels here. The company’s other properties include a riverboat casino in Gary, IN. It also manages a Native American-owned property in Southern California.

Company officials expect that financing will allow it to refurbish andexpand its current properties and permit the company to enter into new and emerging jurisdictions, among other uses. “We now have the capacity to significantly expand the Trump brand into the ever-evolving gaming industry. I anticipate THCR achieving the same level of success as my other business and real estate endeavors,” says Trump. The company is also expected to transfer to Trump the former Trump’s World’s Fair site here and the company’s 25% interest in the Miss Universe pageant.

In early August, Trump Hotels & Casinos struck a deal with DLJ Merchant Banking Partners for an infusion of cash to reduce Trump’s debt and restructure the company through bankruptcy proceedings. By the end of September that deal was off. Under that 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.

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