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This story, in slightly different form, originally appeared in Incisive Media’s The AM Law Daily.

ATLANTIC CITY-Donald Trump’s bid for ownership of Trump Entertainment Resorts Inc. now faces a challenge from a group of bondholders. Earlier this week, Trump and partner BNAC Inc., an affiliate of Beal Bank Nevada, entered into an agreement to purchase the private company that bears his name for $100 million, thereby rescuing it from bankruptcy.

However, a group of bondholders represented by the law firm of Stroock & Stroock & Lavan is challenging Trump’s bid, objecting to several elements in the proposed takeover. Stroock’s financial restructuring co-chair Kristopher Hansen says in statement that the “plan proposed by Beal Bank and Donald Trump is not capable of confirmation for many reasons.” Any acquisition must be approved by the US bankruptcy court in Camden, NJ.

Meanwhile, Trump is being represented by a team of lawyers led by Weil, Gotshal & Manges, which itself faced down a challenge by US trustee over its retention by TER in May. The trustee claimed Weil had a conflict stemming from one of TER’s previous stints in Chapter 11. Weil subsequently resolved its issues with the trustee.

The Trump/Beal deal also must handle another lawsuit. Last week, Coastal Marina, which offered to buy the Trump Marina property from TER for $360 million, sued Trump in bankruptcy court, claiming that the reality TV star/billionaire had failed to maintain the property.

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