Friday, Jan. 28, 2005 | 10:57 a.m.
ATLANTIC CITY -- A would-be savior whose deal to help rescue Trump Hotels & Casino Resorts fell apart last year is now attempting to block the casino company's Chapter 11 bankruptcy reorganization, claiming it is owed $26 million.
DLJ Merchant Banking Partners III, which unsuccessfully negotiated a $400 million bailout for the cash-strapped casino company in August, says its contract contained a clause providing that if Trump reached an alternative deal with someone else by Dec. 1, 2004, it would have to pay a $25 million transaction fee to DLJ.
Trump Hotels filed Chapter 11 on Nov. 21 under a bonds-for-equity plan that would effectively give control of the company to bondholders. The plan calls for a $500 million investment by investment banks Morgan Stanley and UBS, who would provide "exit financing" to help the company spruce up or expand its hotels when the company emerges from bankruptcy.
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