According to a new report from UNITE HERE Gaming Research, Carl Icahn collected over $350 million from his ownership of the debt in Trump Entertainment since 2010.
According to the Report: Since 2010, Icahn has extracted $350.5 million from the Trump casinos in Atlantic City sending that money back to Icahn Enterprises in New York. Payments to Icahn included: principal payments before July 2010 of $3.1 million, a bankruptcy payout of $125 million, a bankruptcy settlement of $15 million, principal payments since July 2010 of $60.9 million, and estimated interest payments of $146.5 million.
In 2010, while Icahn was the sole lender at Trump Entertainment, the interest rate climbed to 12%, compared to a pre-bankruptcy interest rate of 6.2%. If Trump had been paying 6.2% interest instead of 12%, the company would have saved about $70 million over the past four years or about $17.7 million per year.
According to the bankruptcy plan, Icahn values Trump Entertainment between $140 and $190 million if the Taj Mahal remains open.
If the Taj closes, the valuation is between $110 and $155 million.
Between 2009 and 2012, Icahn was also the majority lender to Tropicana Entertainment, owner of the Tropicana Atlantic City.
We estimate that Icahn received cash distributions from the debt of about $97.4 million.
UNITE HERE Local 54 is Atlantic City’s largest casino workers union and represents almost 10, 000 workers at all 8 of Atlantic City’s casinos.