Beal Bank files restructuring plan in Trump case

NEW YORK (Reuters) - Beal Bank Nevada and its affiliate filed a reorganization plan for bankrupt Trump Entertainment Holdings Inc TRMPQ.PK on Friday and said its plan offered similar or greater recovery than one backed by bondholders.

Beal Bank, which has claims of about $485 million, also said its plan would "completely deleverage" the bankrupt casino operator's balance sheet.

The Dallas, Texas-based bank proposed a rights offering that would give bondholders, owed $1.25 billion, up to a third of the company and reduce Beal Bank's claims by $100 million.

Under this plan, the balance of Beal Bank's claims would be converted into an stake of about 55.5 percent of the reorganized company.

Beal Bank's interest in Trump Entertainment's three Atlantic City casinos first emerged in late November, about a week after Donald Trump abandoned his bid to buy the company.

Trump and Beal initially had a joint plan to take over the casino operator, which is in its third bout in bankruptcy. Trump now backs a proposal from the company's bondholders, which would give him a 10 percent stake in the company.

The case is In re: TCI 2 Holdings, LLC, U.S. Bankruptcy Court, District of New Jersey, No. 09-13654.

(Reporting by Deepa Seetharaman; editing by Andre Grenon)