If Donald Trump isn't dealt a
good hand by creditors on Wednesday, his casino company, Trump Entertainment Resorts Inc., will likely once again
fold into bankruptcy protection.
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Trump Entertainment faces a Wednesday deadline to reach an agreement with bondholders to restructure some
$1.25 billion in outstanding notes due 2015. The company, which owns the Trump
Taj Mahal, Trump Plaza and Trump Marina in Atlantic City, missed a Dec. 1 $53.1
million interest payment on the notes.
The noteholders gave Trump until Wednesday to make the payment. But if his company fails to make the payment or
restructure the notes, the bondholders and lenders providing a $490 million
senior secured credit facility will be able to accelerate the maturities on
their debt.
For Trump, it would be a bankruptcy "hat trick." Parts of his
Atlantic City casino empire went through Chapter 11 in the 1990s, and Trump
Entertainment Inc. itself is the successor company to Trump Hotels & Casino
Resorts, which filed bankruptcy in November 2004.
Investors appear to be
fearing the worst. Trump Entertainment shares closed at 23 cents on Wednesday. - John Blakeley
Comments
Donald Slump hides his bankruptcy only about as well as he hides his baldness. The entire financial sector is like a big casino with the illusion of money for nothing. I have come to the realization that Charles Ponzi is the father of modern Kaputalism. Kaputalism works best in absolute slavery-it is so near sighted that it doesn't recognize the need for decent wages so that consumerism can continue.