Tuesday, April 6, 2010

Icahn now owns whole mortgage on Trump casinos

ATLANTIC CITY, N.J. — Carl Icahn has bought the remaining half of the $500 million mortgage on the three Trump Entertainment Resorts casinos he's trying to buy out of bankruptcy.




He also won a $10 million interest payment in the transaction.

The billionaire investor, who previously owned 51 percent of the mortgage issued by Dallas-based Beal Bank, agreed last week to buy the remaining 49 percent at a 7.5 percent discount, according to court documents.

Icahn and Texas billionaire banker Andy Beal are facing off against Trump Entertainment bondholders and Donald Trump for ownership of the company's three Atlantic City casinos. Icahn wants to convert the mortgage into ownership of the casinos.

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