Effective May 20, 2005, the bankruptcy court approved THCR’s prepackaged restructuring. The Company emerged from bankruptcy, slimmed down, with $400 million less debt, a 400 basis point reduction interest costs and a more flexible capital structure
Under the restructuring plan, the company issued about 40 million shares of stock, and took a new name, Trump Entertainment Resorts Inc. (TRMP).
Holders owning about $1.8 billion of notes exchanged them for about $74 million in cash, along with $1.25 billion of new 10-year notes and about $395 million worth of common stock. These creditors ended up owning about two-thirds of the company.
After a 1,000 for 1 reverse stock split, previous holders of common stock who were unaffiliated with the Company, saw their existing shareholder interests wiped out.
As for The Donald, after infusing the restructured company with a $55 million cash equity investment and converting $16.4 million of debt he owned into common stock, he saw his stake shrink to about 27 percent from a prior 56 percent. Although the Donald was forced to cede day-to-day control of the gaming operations to others, to the dismay of common stock shareholders, The Donald remained chairman and chief executive.
Given The Donald’s penchant for attractive women, it should not surprise our readers that the Bankruptcy Court also approved the transfer of a 25% interest in the Miss Universe Pageant to Mr. Trump.
Critics of the reorganization plan called it a "sweetheart deal" for the real estate tycoon.
“Money was never a big motivation for me, except as a way to keep score,