Ahead of a key hearing this week in the Trump Entertainment Resorts Inc. bankruptcy, unsecured creditors blasted the company's disclosure statement for its chapter 11 reorganization plan as a "charade" that should not be approved by the judge, Philly.com reported on Saturday. The creditors said that the plan is designed for the "sole purpose of preserving hundreds of million of dollars in tax attributes for the exclusive benefit of [Carl] Icahn," who has a $292 million secured claim on Trump assets. Under the plan, affiliates of Icahn would trade $292 million in debt for 55 percent of the stock in the company and a $100 million note that would not require cash interest payments. Instead, the amount owed to Icahn would increase over five years, according to bankruptcy court filings. Icahn — who lost a battle for ownership of Trump Entertainment in 2010 bankruptcy — would obtain the remaining 45 percent of the company's equity in exchange for a $100 million investment. But Icahn will only make that $100 million investment if state and local governments agree to provide $175 million in aid over the next five years, including $55 million immediately after the company emerges from bankruptcy, according to the plan.
