CAMDEN - Lawyers for two billionaires will be in court Tuesday wrangling over which will have an ownership stake in the three Atlantic City casinos that bear the name of Donald Trump.
Trump resigned last year from the board of Trump Entertainment Resorts just before the company filed for bankruptcy.
But now he's joined with the bondholders to emerge as the owner.
The competition is another big name in the casino business. Carl Icahn says he would wipe out all the casino's debt if his group takes over. But it's not certain the Trump name would remain on the casinos if that's the case.
A federal bankruptcy judge in Camden is starting proceedings to determine which group should own the business.
Meanwhile, Beal Bank, a senior lender to Trump Entertainment Resorts (TRMPQ.PK), filed a complaint on Monday against 10 other creditors of the bankrupt casino operator, accusing them of violating an intercreditor agreement.
The complaint came on the eve of the hearing in New Jersey bankruptcy court.
On one side is a group of bondholders owed $1.25 billion who have the support of Donald Trump. On the other is Beal Bank and billionaire investor Carl Icahn with their own restructuring proposal.
In the complaint, Beal Bank -- which lent $500 million in financing to Trump -- said bondholders and U.S. Bank violated an intercreditor agreement by proposing an alternate reorganization plan for Trump Entertainment.
A representative for the bondholders, which includes Avenue Capital Management and OakTree Capital Management, could not be immediately reached.
A U.S. Bank representative could not be reached. U.S. Bank is the second lien collateral agent, according to the complaint.