Having been quoted as saying that if he couldn’t run the place he wouldn’t be a part of it, much like a fractious child taking his ball and leaving if the game was not being played to his own rules, Donald Trump resigned from the board of Trump Entertainment Resorts last week. The company has now filed for Chapter 11 bankruptcy and the three Trump casinos are for a third time seeking the protection of the bankruptcy courts.

Trump Entertainment Resorts missed a US$53 million interest payment in December and negotiated four extensions to the payment date, the last of which expires today. Trump’s decision, along with daughter Ivanka, to resign followed the rejection by bondholders of his offer to buy the company. Since the last restructuring of the company its market value has fallen from US$842 million to just US$7.3 million.

The Company's Chief Executive Officer, Mark Juliano, noted, "We are focused on our goal of successfully restructuring our company to reduce our debt in order to strengthen our balance sheet during this difficult economic period. This filing will result in no immediate change in our daily operations, and we expect to make no changes regarding our operating structure or philosophy. Importantly, our customers will not be affected by this filing, and there will be no change to our TrumpONE or other marketing programs.”

He added, “We remain focused on operating as efficiently as possible in this strained economic environment, and we appreciate the ongoing dedication of our team towards our mutual goal of building a successful company together." The Company has requested court approval to continue to pay its vendors in the normal course of business. Additionally, the Company is not seeking debtor-in-possession financing as it currently has adequate cash resources to fund its ongoing business operations.
(E-02.17.09)

© Copyright 2009 CasinoCompendium



>>> return to archives
>>> return to frontpage