UNITE HERE: “Carl Icahn made $350 million from Trump Entertainment in Atlantic City”

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Carl Icahn YouTube

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.

1 COMMENT

  1. This report by Unite Here, could be accurate, but it is misleading. In this
    case Carl Ichan is a lender, and loans include interest payments. And when
    the borrower’s business is junk rated (Trump Entertainment had 3 previous
    bankruptcies) interest rates are much higher. At Resorts International Inc., I
    remember us paying 14% on some borrowings, and we had never been bankrupt. The
    12% interest rate was obviously justified as the Trump properties are now
    enjoying their 4th bankruptcy (perhaps enjoy was not the best verb). The current
    problems in Atlantic City were not caused by the Trump operators or by Mr.
    Icahn. Rather Atlantic City built to provide the gaming experience to all of the
    Northeast population in America. Where 95% of our previous customers live closer
    to casinos in other jurisdictions. Yet Unite Here is doing nothing to assist an
    industry, that has benefited its membership for over 30 years. Rather they are
    acting like a spoiled child, and pickets in front of the Taj. I question how
    this helps an industry clinging to hope, in a fight to stay relavent.

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