Atlantic City Casino Collectibles Message Board

Ricky Pushkin

CAMDEN — Carl Icahn, Donald Trump’s bitter rival, may dump the Trump name and undertake a rebranding if he gets control of the Trump casinos in the bankruptcy battle between the two billionaires.

In testimony Tuesday in U.S. Bankruptcy Court, one of Icahn’s top executives contended that the Trump name isn’t all that important for attracting customers to Atlantic City anyway.

“I don’t believe that people come to a casino because it has the Trump name on it,” said Vincent J. Intrieri, senior managing director of Icahn Partners L.P.

Intrieri noted that Icahn has not yet decided what brand would take the place of Trump, but he suggested putting Icahn’s name on the marquee.

“I think the Icahn name would be a more valuable drawing name than Trump,” he testified.

Speaking to reporters afterward, Intrieri stressed that Icahn has not considered putting his own name on the casinos.

“He’s not that vain,” Intrieri said. “I told him we should put your name up there. It’s a much more valuable brand. But right now, it’s a no. We’ll have to convince him otherwise.”

Icahn, a corporate takeover specialist, is in the midst of a bankruptcy fight with bondholders aligned with Donald Trump for ownership of the casinos. Bondholders have agreed to give Trump as much as a 10 percent stake in the company in exchange for the continued use of his name.

Icahn would have to reach a naming rights deal with Trump if he prevails in the bankruptcy battle. However, Intrieri claimed that Icahn may not want to keep the Trump casino name after all because it has already been tarnished by two previous trips through bankruptcy.

“I think that the Trump name can be a detriment because of all the times it has filed for bankruptcy,” Intrieri testified.

Now in its third week, a hearing on the competing buyout plans is scheduled to wrap up today with closing arguments. Attorneys say bankruptcy Judge Judith H. Wizmur likely will select the winning proposal sometime in April.

Intrieri was the last witness in the hearing. His testimony heightened tensions between the Icahn and Trump sides, particularly over the supposed value of the Trump brand.

Donald Trump, in testimony on Feb. 25, asserted that his name would be a huge asset to the casinos once they emerge from Chapter 11 bankruptcy protection.

“It’s a great brand. It’s the best brand,” Trump said.

Intrieri insisted the main reason Icahn wants to keep the Trump name is to avoid what he estimates is the $15 million cost to rebrand the Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino and Trump Marina Hotel Casino.

“Carl and I don’t believe that the Trump brand necessarily adds revenue to the company,” Intrieri said. “The only reason we want it there is the cost to remove it.”

Trump Entertainment Resorts Inc. spokesman Tom Hickey said the company estimates it would take about $17 million just to remove the Trump name from the signs and other parts of the casinos. A full rebranding would only add to that cost, he said.

Icahn hopes to add the Trump casinos to his nationwide gaming empire. On Monday, he completed his $200 million purchase of Tropicana Casino and Resort in Atlantic City. He will fold the gaming hall into his Tropicana Entertainment Inc. portfolio of nine casinos in New Jersey, Nevada, Mississippi, Louisiana and Indiana.

Icahn has bought a majority of the $486 million mortgage on the Trump casinos issued by Dallas-based Beal Bank. He proposes to convert the loan into ownership of the casinos and would wipe out the company’s debt.

Donald Trump and Trump Entertainment support a $225 million buyout offer proposed by the casino bondholders. Bondholders plan to invest $100 million cash in the casinos and would use $125 million to reduce Trump Entertainment’s debt to $335 million.

Intrieri maintained that the bondholders’ plan, if accepted by the court, would only smother the casinos with debt and force them back into bankruptcy for a fourth time.

“In my opinion, this will be in bankruptcy within the next two years,” he said.

Contact Donald Wittkowski:

609-272-7258

DWittkowski@pressofac.com

Ricky Pushkin · Posted: Wed Mar 10, 2010 1:13 pm Post subject:

Root for Icahn... this could bring a lot of new chips!!!

Scott Harmon · Joined: 11 Apr 2007 Posts: 24

New Chips... I agree Laughing

Robert Montebello · Joined: 05 Mar 2007 Posts: 5 Location: Philadelphia PA

Hopefully if Ichan does take them over, he doesn't mis-manage them, like the people he hired to run the Sands did. What a shame they closed down the Sands, despite all his money.