Carl Icahn, Donald Trump Wrestle for Control of Trump Casinos

Billionaires Carl Icahn and Donald Trump are competing for control of Trump Entertainment and its three Atlantic City casinos, with Trump trying to bring the company out of bankruptcy even as Icahn uses his possession of most of the company

Carl Icahn is putting up a battle against fellow billionaire Donald Trump for control of Trump's eponymous casino company as it prepares to emerge from bankruptcy. At stake is the right to operate the three Trump casinos in Atlantic City.

Last week, one of Icahn's partners told a US Bankruptcy Court that Trump's plan for restructuring Trump Entertainment did not account for present conditions and avoided necessary investment the gambling company would need to return to success. Neil Augustine of Rothschild Investment Bank also said the Trump proposal would once again bury the gaming operator in debt.

“This thing is being massively over-levered,” stated Augustine, adding that Trump's plan "doesn’t work. It runs out of money.”

Augustine also said Trump failed to account for the impact of table gaming in Pennsylvania, as well as cutting over $52 million in necessary investment in refurbishing and upgrading facilities.

“We all know that table games will have an impact," Augustine told the court. "We all know that capital spending will have a return on investment."

Icahn has purchased most of the debt owed by Trump Entertainment, including the majority share of the $486 million mortgage on the casinos. He would swap the markers he holds for ownership, wiping out the casinos' debt.