Trump Hotels and Casino Resorts
reportedly received bankruptcy court approval Tuesday for its plan to exit bankruptcy.
The news gave a boost to the company's shares, which finished the session up 20 cents, or 13.3%, at $1.70.
Under the restructuring plan, holders of some $1.8 billion in debt will receive $1.25 billion in new debt, along with equity in the new company that emerges from bankruptcy.
Under a deal reached last week, current holders of common stock who are unaffiliated with the company will receive cash payouts totaling $17.5 million.
Donald J. Trump, who has become a fixture of prime-time television by mentoring executive hopefuls on
, will remain the chairman of the company, but his equity stake will drop to about 30% from 56%.
Before filing for bankruptcy protection in November, Trump's casino empire had struggled under the weight of its debt while also facing increased Atlantic City competition from the Borgata, a joint venture of