If Donald Trump is looking for a challenging assignment for the contestants on his "Apprentice" television show, here's one: How about putting together a plan to turn around his financially strapped Trump Entertainment Resorts Inc., which operates casinos in Atlantic City, N.J.? The task would be an enormous undertaking and one solution that Trump himself is considering by taking the company private, according to the Financial Times.
Continue reading below
Going private may seem like a Herculean task for Trump Entertainment in this economy. After all, if Trump had to borrow money, where would he get it? Amid the worst recession in decades, who would lend to a company whose main source of revenue are casinos? Gaming is not exactly a growth industry right now. In fact, Trump Entertainment's revenue fell by 9.9% to $346.2 million in October from a year ago. Add to that Trump Entertainment already has $1.7 billion of debt, including a blemish of missing a $53.1 million bond interest payment earlier this month.
If Trump can gather his rich friends to take his company private, the plan is a possibility. It may be the right plan for the patient investor with deep pockets who can handle some pain. Going private would remove Trump Entertainment from the scrutiny of analysts and shareholders. With the holidays here, finding a solution for Trump Entertainment is likely Donald's biggest wish, but it's likely a problem he'll be saddled with in the new year. And if an "Apprentice" candidate can solve the problems, then that individual really would be a worthy addition to the Trump organization. - Gerald Magpily
See FT Article (subscription required)
