ATLANTIC CITY, N.J. (AP) -- Trump Hotels & amp; Casino Resorts plans to restructure under bankruptcy protection plan that would strip Donald Trump of his majority stake in the debt-burdened company.
Under the plan announced late Monday, DLJ Merchant Banking Partners, an arm of Credit Suisse First Boston, and Trump would invest $400 million to help Trump Hotels & amp; Casino Resorts pay down its $1.8 billion in debt and cut interest payments in half.
Donald Trump, the chairman, chief executive and largest shareholder, would see his stake in the company shrink from 56 percent to 25 percent, with Credit Suisse owning more than two-thirds of the company.
Trump himself would contribute nearly $71 million, $55 million of which would be in the form of a co-investment with Credit Suisse and 15.9 million of which would come from his Trump Casino Holdings notes. Trump would also give up trademark rights to his name and likeness for use in connection with casino operations.
The company plans to enter Chapter 11 bankruptcy next month, emerging within a year. The restructuring plan is expected to be completed by first quarter of 2005, according to the company.