Trump Bondholders OK Debt Restructuring

From Reuters

Trump Hotels & Casino Resorts Inc., which has been on the brink of bankruptcy, said a majority of bondholders had approved a debt restructuring plan that would allow Donald Trump to remain the company’s chairman and chief executive.

The plan calls for Trump Hotels to file a prenegotiated Chapter 11 bankruptcy plan to gain court and creditor approval for the deal, which involves bondholders swapping some $1.8 billion in existing debt for new debt and equity.

The company will cut debt by $400 million and reduce its interest rate to 8.5%, saving about $98 million annually.