Trump’s Casino Firms Hoping To Avoid Bankruptcy

[Purveyor]

Reflecting the challenges facing Atlantic City's gambling market, Donald Trump's casino company is faced with dropping revenue and is trying to dodge another trip to Bankruptcy Court.

The deadline for Trump Entertainment Resorts Inc. to reach agreement with its lenders and note holders on restructuring $1.25 billion in debt is tomorrow. The company, which owns the Trump Taj Mahal, Trump Plaza and Trump Marina in Atlantic City, missed a $53.1 million bond payment on Dec. 1, and got a 30-day extension.

In a November filing with the Securities and Exchange Commission, the holders of roughly 70 percent of the company's outstanding senior secured notes due in 2015 agreed to wait until tomorrow to exercise their rights related to the missed bond payment. The lenders involved in a $490 million loan agreement also agreed to wait until tomorrow to exercise their rights.

If no deal is reached, Trump Entertainment could file for Chapter 11 bankruptcy protection - its fourth such filing since 1991.

Wall Street analysts say Trump Entertainment cannot cut expenses as fast as revenue is declining at its three Atlantic City casinos.

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Philadelphia Inquirer: http://www.philly.com/inquirer/breaking/business_breaking/20090120_Trumps_casino_firms_hoping_to_avoid_bankruptcy.html

[w4rma]

1. I'm skeptical. How many times would this bankruptcy make the total number that Trump has filed? (nt)

[Dennis Donovan]

2. He's been a big recipient of corporate welfare in the past...

...which begs the question; has he applied for a Fed bailout yet?;)