Shareholder sues Trump Hotels over plan

December 24

Donald Trump and four other directors are being sued by a Trump Hotels shareholder over the would-be plan to exit bankruptcy. The shareholder sights that it wrongly states him as majority holder.

In the suit filed Wednesday in Delaware, Holder Ariel Holdings LLC said that the bankruptcy plan, proposed, only serves Trump's personal interest and defies the board's duties of good faith to its shareholders. In the suit, it lists Ariel as owning over 100,000 shares of Trump's company.

The suit claims that the plan would weaken shareholders' existing 44% stake to a mere .05%.

Bankruptcy court papers state that through a reverse stock split, shareholders would get one share of the newly organized company for every 1000 shares they now possess.

Additionally, shareholders would get one-year warrants to buy over 3.4 million shares of new common stock with an combined buying price of $50 million, which would be $14.60 per share.

Also, the suit states that it wishes to speak for other shareholders too. The suit is asking the court to demand that Trump and other directors to act independently to protect the interests of all shareholders and to make sure that there are no variances of interests between Trump and other shareholders. Additionally, the suit is seeking certain fees and damages.