Donald Trump and his daughter, Ivanka have reached a settlement agreement with the creditors involved in the bankruptcy battle for Trump casinos in Atlantic City. Under the deal, Trump has agreed to discontinue his attempts to regain control of Trump Entertainment Resorts, which were filed for bankruptcy protection in February.
Mr. Trump abandoned his post as Chairman at this time. Under the settlement agreement, the Trumps are required to discontinue litigation against the creditors while the casinos will continue to operate beneath the Trump name for all intensive purposes, including marketing for the Casinos and gaming operations in 5 surrounding states.
The settlement was reached under the terms that the Trump Organization receives up to a 10% stake in the company. The agreement was designed in a way that would aid Trump entertainment in its reemergence from Chapter 11. Mr. and Ms. Trump offered $116 million in cash to take the company private; however, private equity firm Avenue Capital Group,has too high a monetary stake in the deal and proposed a competing takeover plan for more than double that amount.
In a written statement, Mr. Trump explained the decision. "This prolonged and continued litigation and the associated cost to the estate would mean that whoever won under their plan would ultimately lose.”
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