Law firm asks court to make Trump Hotels pay legal fees | VailDaily.com
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Law firm asks court to make Trump Hotels pay legal fees

WASHINGTON – A law firm representing shareholders of Trump Hotels & Casino Resorts Inc. is asking a bankruptcy court to make the company pay more than a quarter-million dollars in legal fees.Last week the Bayard Firm, acting as co-counsel to the official committee of equity security holders, submitted a request to the U.S. Bankruptcy Court in Camden, N.J., to compel Trump Hotels to pay $266,688.The firm said its actions, in concert with other parties in the case, led to the successful sale of the former site of the World’s Fair Casino on Atlantic City’s Boardwalk, according to court papers obtained Monday by Dow Jones Newswires.Court papers said a settlement reached between the company and shareholders involves a cash payment of about $40 million, which includes $24.5 million in net proceeds from the property sale.Although Trump Hotel’s Chapter 11 plan of reorganization was confirmed April 5 and the company emerged from bankruptcy protection May 20, the firm said its fees have yet to be paid, even though it agreed to lower its fees by about $30,000.The firm said the fees incurred were reasonable and necessary as it provided essential services to the equity committee, and that Trump Hotels should be compelled to pay without “further unjustifiable delay.”In September, the bankruptcy court declared BET Investments Inc. the winning bidder in an auction for land that once supported Donald Trump’s World’s Fair Casino, with an offer of $25.15 million.When Trump Hotels left bankruptcy protection, it changed its name to Trump Entertainment Resorts Inc., but the property was still subject to a Chapter 11 auction to ensure that shareholders benefited from the best bid for the land.It is unusual for shareholders in a bankruptcy case to receive any compensation from their investment because after secured creditors, usually banks, are paid, there is nothing left for equity holders.Trump Entertainment Resorts is based in Atlantic City.


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