Lenders Blast Trump's Bid To Reclassify Payments

By Nick Brown

Law360, New York (March 17, 2010, 4:15 PM ET) -- First-lien lenders of Trump Entertainment Resorts Inc. are urging a court not to let the bankrupt casino operator recharacterize its post-petition interest payments as payments of principal, saying such a move could reduce the value of lenders' claims.

Beal Bank SSB and Icahn Partners LP objected on Tuesday to Trump's motion to reclassify about $51.2 million in payments, saying recharacterization would freeze the value of the lenders' collateral at its current value, depriving them of the right to benefit from future appreciation and revenue.

Courts generally...
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