OTHER NEWS - Aug. 29, 1991
From Times Staff and Wire Reports
Taj Mahal Casino’s Plan to Restructure OKd: Donald Trump’s Taj Mahal Casino Resort won approval from a bankruptcy judge for a plan to restructure its massive debt by surrendering half the developer’s equity in the Atlantic City property. The plan, which gives bondholders the equity in exchange for their acceptance of lower interest rates, was approved after a 4 1/2-hour hearing by Bankruptcy Judge Rosemary Gambardella. The approval came just six weeks after the Taj Mahal filed for Chapter 11 bankruptcy protection from its creditors. Most bankruptcies drag on for months or even years. But the casino averted that prospect by securing the needed bondholder approvals beforehand.
