Trump Entertainment Resorts Inc. (fka TRMPQ)

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Beal Bank sues Trump creditors ahead of hearing

NEW YORK, Feb 22 (Reuters) - 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.

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The complaint comes on the eve of a hearing in New Jersey bankruptcy court that will pit two competing plans for control of Trump Entertainment against each other.

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.

Trump Entertainment filed for bankruptcy last February. The Atlantic City casino company has been hurt by growing regional competition for its properties as well as the slide in discretionary spending.

http://www.reuters.com/article/idUSN2221999920100223