Trump knocks Icahn in bid for A.C. casinos

Donald J. Trump characterizes billionaire financier Carl Icahn as a good friend but says that his friend doesn't spend money.

"I've known him for many years," Trump told a U.S. Bankruptcy Court hearing in Camden this morning, referring to the man who has put forth a plan to bring Trump Entertainment Resorts Inc. out of its third bankruptcy.

But, Trump continued as he answered a question from one of Icahn's lawyers, "He doesn't spend any money. If he spends 10 cents, it's a major event."

Trump is fighting to have control of Trump Entertainment Resorts - and its three Atlantic City casinos - awarded to the company, bondholders and himself and not to a group headed by Icahn.

And that despite the fact that Trump resigned from the company's board a year ago.

Trump, who spent 75 minutes as the star witness at this morning's hearing, acknowledged that the three Trump casinos - the flagship Trump Taj Mahal, Trump Marina, and Trump Plaza - were having trouble in this economy. But he added that "I know the alternative, and the alternative would be a mess. Look at how he [Icahn] ran the Sands, look at TWA, Excel Communications, and many other companies that he's taken through bankruptcy."

When asked about his ties to and sentiments toward the Jersey Shore resort, the businessman/reality TV star said: "I've been in Atlantic City since 1980. I've gotten a lot of rewards for being there through the good and the bad times.

"I have a special place in my heart for Atlantic City. Atlantic City will reach new heights when the economy turns around."

Judge Judith Wizmur, who handled the firm's last bankruptcy filing in 2004-2005, is presiding over the third day of deliberations to determine the fate of the three casinos.

Wizmur will decide between two competing plans for Trump Entertainment to emerge from its current bankruptcy: one devised by bondholders, the company, and Trump; the other by Icahn and Beal Bank.

She ruled last week that Trump and his daughter Ivanka could vote on Icahn's buyout plan even though father and daughter had resigned from the firm's board of directors a year ago, just days before the company filed for bankruptcy.

This week, the bondholders and Trump Entertainment laid out a restructuring plan that offers $225 million for the company and places about 5 percent of the firm with Trump himself, with rights to buy an additional 5 percent.

Beginning next week, Icahn Partners L.P., a hedge fund controlled by Icahn, will present a plan that offers $484 million to pay off first-lien notes in exchange for 100 percent equity and that eliminates all company debt.

Icahn, whose net worth is listed by Forbes magazine at about $9 billion, took ownership of the Tropicana on the Boardwalk for $200 million at a bankruptcy auction last summer. If his plan for Trump Entertainment Resorts prevails, he stands to control four of Atlantic City's 11 casinos - the same as market leader Harrah's Entertainment Inc.