Trump Hotels & Casino Resorts announced today that its Plan of Reorganization was confirmed by the court in Camden, New Jersey yesterday, and expects to emerge from the process as Trump Entertainment Resorts, Inc. in early May when the Plan becomes effective. As previously announced, the Plan, which was supported by an overwhelming percentage of its equity and bondholders, calls for an approximately $400 million reduction in the Company’s indebtedness with a reduced interest rate of 8.5%, representing an 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 substantially all of the Company’s assets, which is expected to allow the Company to refurbish and expand its current properties and permit the Company to enter into new and emerging markets. Also at the court hearing yesterday, the court moved the record date used in determining stakeholders entitled to receive any distributions under the Plan from February 9, 2005 to March 28, 2005.
Donald J. Trump, the Company’s Chairman and Chief Executive Officer, commented, “It’s been amazing that we have come to such a quick confirmation and have received such overwhelming support by all our stakeholders. We will now be well poised to emerge as a strong competitor in all of our markets.” Scott C. Butera, the Company’s President and Chief Operating Officer, added, “Today marks a milestone for our Company. We are pleased to receive the court’s expeditious confirmation of our Plan, and we look forward to successfully completing our reorganization in early May. The recapitalized Company will be well positioned to augment its strong presence in Atlantic City, New Jersey and Gary, Indiana and capitalize on the strength of the Trump brand by expanding into new markets on a global basis. The recapitalization has been a comprehensive process. We want to thank our investors, employees, patrons and vendors for all of their continued support during this process, and we look forward to working with them in continuing to build a great company.”