| Trump Hotels & Casino Resorts, Inc. Reaches Settlement with Equity Committee |
Trump Hotels & Casino Resorts, Inc. ("THCR" or the "Company") (OTCBB:DJTCQ.OB) and the official committee of THCR's equity security holders (the "Equity Committee") appointed in connection with the Company's recapitalization plan (the "Plan") announced today that they have reached a resolution that will result in the Equity Committee agreeing to support the Plan and withdrawing its opposition to the Plan. The settlement, which has also been consented to by the informal committees of the Company's Trump Atlantic City Associates' First Mortgage Notes and Trump Casino Holdings' First and Second Priority Mortgage Notes, provides for the Company making a $17.5 million cash payment to the Company's unaffiliated common stockholders in connection with the Plan. In addition, Donald J. Trump would exchange his right under the Plan to receive the former World's Fair Site in Atlantic City, New Jersey for additional equity in the recapitalized Company, which would bring Mr. Trump's stake to approximately 30% of the Company's fully diluted common stock (including the Class A Warrants discussed below, and not including any shares to be reserved for issuance under management incentive plans). The World's Fair Site would be sold at auction following the consummation of the Company's recapitalization proceedings, and the net proceeds would be distributed to the Company's unaffiliated common stockholders. The property would be subject to a perpetual negative covenant preventing future owners or any transferee, assignee, occupant or lessee from developing any gaming activities on the property.
The Class A Warrants to purchase up to an aggregate of approximately 8.29% of the recapitalized Company's new common stock (on a fully-diluted basis) would be reallocated, with the unaffiliated common stockholders receiving Class A Warrants to purchase up to approximately 5.34% of the recapitalized Company's new common stock and Mr. Trump receiving the remaining warrants to purchase approximately 2.95% of the new common stock. Upon consummation of the Plan and assuming the exercise of all of his warrants received under the Plan, Mr. Trump would be the largest individual holder of THCR common stock. The Company believes that the Equity Committee's support of the Plan will expedite the reorganization process and help the Company meet its initial timeline to emerge from the court process by the beginning of May 2005.
The Company commenced its recapitalization proceedings on November 21, 2004. The Plan 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. For information on the proceedings, including the detailed disclosure statement and the amended plan of reorganization, interested parties are encouraged to visit the Company's website at www.THCRrecap.com. The hearing to confirm the Company's Plan is scheduled to commence on April 5, 2005 in Camden, New Jersey.
Donald J. Trump, the Company's Chairman and Chief Executive Officer, commented, "I firmly believe in the future of the Company, as evidenced by my increasing my overall ownership in the recapitalized Company to approximately 30%." Scott C. Butera, the Company's President and Chief Operating Officer, added, "We are pleased to have reached an agreement with the Equity Committee which provides additional value to our shareholders and facilitates the execution of the Company's recapitalization plan. The Company's plan now has overwhelming support from its major equity and fixed income stakeholders."
Any securities proposed to be issued in connection with the Plan (including the Class A Warrants referenced above) have not been registered under the Securities Act of 1933 or any state securities laws and unless so registered may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws. The information contained herein and in the attached exhibit does not constitute an offer to sell or the solicitation of offers to buy any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Our Company:
THCR is a leading gaming company that owns and operates four properties. THCR's assets include Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, located on the Boardwalk in Atlantic City, New Jersey, Trump Marina Hotel Casino, located in Atlantic City's Marina District, and the Trump Casino Hotel, a riverboat casino located in Gary, Indiana. Together, the properties comprise approximately 371,300 square feet of gaming space and 3,180 hotel rooms and suites. The Company is the sole vehicle through which Donald J. Trump conducts gaming activities and strives to provide customers with outstanding casino resort and entertainment experiences consistent with the Donald J. Trump standard of excellence. THCR is separate and distinct from Mr. Trump's real estate and other holdings.
PSLRA Safe Harbor for Forward-Looking Statements and Additional Available Information
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements.
All statements, trend analysis and other information contained in this release relative to THCR's or its subsidiaries' performance, trends in THCR's or its subsidiaries' operations or financial results, plans, expectations, estimates and beliefs, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "could" and other similar expressions, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of THCR, THCR notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. The forward-looking statements contained in this release were prepared by management and are qualified by, and subject to, significant business, economic, competitive, regulatory and other uncertainties and contingencies, all of which are difficult or impossible to predict and many of which are beyond the control of THCR. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. The forward-looking statements in this release reflect the opinion of the Company's management as of the date of this release. Readers are hereby advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time or other factors beyond the control of the Company. This Company does not intend, however, to update the guidance provided herein prior to its next release or unless otherwise required to do so. Readers of this release should consider these facts in evaluating the information contained herein. In addition, the business and operations of THCR are subject to substantial risks, including, but not limited to risks relating to liquidity and cash flows, which increase the uncertainty inherent in the forward-looking statements contained in this release. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by THCR or any other person that the forward-looking statements contained in the release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.
Additional information concerning the potential risk factors that could affect the Company's future performance are described from time to time in the Company's periodic reports filed with the SEC, including, but not limited to, the Company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. These reports may be viewed free of charge on the SEC's website, www.sec.gov, or on the Company's website, www.trump.com.
Source: BUSINESS WIRE
Tuesday, 29 March 2005
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