Trump Entertainment to miss interest payment

[swag]

Source: MarketWatch

CHICAGO (MarketWatch) -- Facing tough competition and sliding revenue amid the economic meltdown, Trump Entertainment Resorts will have to skip a $53.1 million interest payment scheduled for Monday on its 8.5% senior secured notes due 2015 in order to maintain sufficient liquidity.

The Atlantic City, N.J., casino operator, with about $1.25 billion worth of the notes outstanding, said late Friday that it has a 30-day grace period to pay up and will meanwhile seek talks with its lenders to revamp its capital structure and improve its liquidity. A panel of independent directors will oversee the talks, the company said.

If it doesn't make the payment in the 30-day grace period, Trump Entertainment said, holders of a quarter of the notes and lenders under a $490 million senior secured loan to a company subsidiary will be able to accelerate the maturities of those obligations.

Donald Trump, the television personality and New York real estate investor, is non-executive chairman and the largest shareholder of Trump Entertainment , which operates three Atlantic City casinos: The Trump Taj Mahal and the Trump Plaza on the Boardwalk and the Trump Marina in the Marina district. The last is being sold to Coastal Development for $270 million in a deal that has seen the price lowered and the closing deadline delayed.

Read more: http://www.marketwatch.com/news/story/Trump-Entertainment-miss-interest-payment/story.aspx?guid={7C187DC9-F04B-4225-A202-648889E4413E}

[Demeter]

1. Oh, Dear! How Will We Ever Survive?

Quite well, I think.

[Mari333]

3. Donald Trump — Net Worth: $2.9 Billion n/t

[Night_Nurse]

2. Oh shit... here it comes: The Trump bailout. nt

[daninthemoon]

4. can we be expecting some great hotel deals in Vegas soon?

how are the Vegas properties doing? or is this a problem solely for trump due to his overextending again? is gaming revenue down?

[TankLV]

12. His Trump Towers is failing miserably...

He is not allowed to own any gaming properties in Vegas - his Trump Towers is a high-end, mixed use, hotel/time share condo - he's on the Vegas gambling business "black list"...so he won't be opening any gaming properties here for the foreseeable future.

The original Trump Towers was only "sold out" with down payments at the start of the project.
When the economy and housing bubble burst - most of the prospects "lost" their non-refundable down payments.
Hence, the property is over 90% empty and "unsold"...

His "Tower II" was hyped as also "sold out" to get the big buck down payments - "hurry before they're all gone!" - but it had ZERO pre-sales - hence, it's not being built...

Couldn't happen to a "nicer" guy...

He constantly goes bankrupt - I think about four times now - and leaves all the "little people" holding the bag while he goes off to his next "new project".

And to think he wanted our architectural firm to do the work for nothing but the "privledge" of being able to say he was our "client" - we insisted on getting payment in full for the original negotiated contract sum before releasing any documents...and canceled any further dealings with him for his second tower!!!

He's a fucking prick and LEACH on society...

Was another one whose father left him millions and he turned it into many millions (NOT "billions").

His "worth" is all his many layers of corporations HE HIMSELF controls and is all on "paper" - so he really "owns" not too much personally...

great scam if you can keep it up...

[KakistocracyHater]

13. why am I not surprised?

that was smart of you & your firm.

[soothsayer]

14. yes, gaming rev is down but he financed his debt at really high intersest rates years ago

and he can't get them to change the terms (on his AC properties)

[peace13]

5. Hey Donald....

you're fired!!

[Donnachaidh]

7. leave the pass card and the hairpiece at the door when you leave n/t

[bemildred]

6. Oh good.

:popcorn::popcorn:

[sarcasmo]

8. That guy is one pompous ass and it will be curious to see how he wiggles his way out of this one.

[pam4water]

9. Will he have to sell his comb over?

[gratuitous]

10. Hey, he's gone banko before

No big deal; his creditors are so dependent on The Donald that they'll gladly forgive interest, missed payments, and any number of transgressions. Of course, the folks that have lent the likes of you money aren't going to fail if you need a little extra time one month. Although the zeal they display in going after your lousy fifty bucks might give you a different impression.

[katanalori]

11. Trump endorsed McCain/Palin

because God forbid, the pompous @sshole might have to pay a little more in taxes.