Feb. 23 (Bloomberg) -- Donald Trump opened his court battle today with billionaire Carl Icahn over three bankrupt casinos that bear Trump’s name.
In their opening statements, attorneys for Icahn and Trump disagreed about whether bankruptcy law allows the three casinos to keep using the Trump brand name.
“Icahn can’t get the benefits” of the Trump name, attorney David Friedman told U.S. Bankruptcy Judge Judith Wizmur today.
The court hearing in U.S. Bankruptcy Court in Camden, New Jersey is scheduled to last at least four days as lawyers pitch competing plans for reorganizing Trump Entertainment Resorts Inc.
Wizmur will hear from gambling consultants, economists and financial advisers for each side. Trump has changed positions and allies since the company filed bankruptcy on Feb. 17, 2009.
Trump abandoned his partnership with Trump Entertainment’s banker in favor of an alliance with his former adversaries in the case, noteholders who say that Trump personally guaranteed to repay at least $290 million of the $1.25 billion they are owed.
Icahn is working with the banker jilted by Trump, Andy Beal, a Dallas businessman who has been a high-stakes poker player. Trump Entertainment owed Beal Bank more than $480 million, debt that had a higher payment priority than the notes. Icahn bought the right to collect that bank debt for about 92 cents on the dollar, Friedman said in court today.
The case is In re TCI 2 Holdings LLC, 09-13654, U.S. Bankruptcy Court, District of New Jersey (Camden).
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