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< Return to Firm News ST&G Scores Decisive Victory for Trump Stockholders June 10, 2005 In early 2005, ST&G was engaged to represent the Official Committee of Equity Security Holders for Trump Hotels & Casino Resorts, Inc. ("THCR"). Shortly after THCR and its affiliates (the "Debtors") filed their chapter 11 petitions, the Debtors filed a pre-negotiated chapter 11 plan, which would have diluted THCR's public shareholders by a 1,000-to-1 ratio and given them only a small package of one-year warrants in return.
ST&G immediately challenged the efforts of the Debtors, the Debtors' bondholder constituencies, and Mr. Trump to push their plan through to confirmation. In order to oppose the confirmation of the plan, which was being prosecuted on an expedited basis, ST&G took an aggressive, yet calculated stance. Through its extensive analysis of the Debtor's financial affairs, ST&G developed a legal theory that demonstrated that the THCR shareholders were entitled to tens of millions of dollars in value above what they were set to receive under the plan.
Only two days after ST&G filed its objection to confirmation of the pre-negotiated plan, the Debtors and the two bondholder groups engaged the Equity Committee in settlement negotiations. The discussions quickly led to plan modifications that provided for a significantly enhanced distribution to public shareholders. At the end of the day, ST&G's efforts increased the value of the distribution to THCR's public shareholders by approximately $40 million in cash.
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