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Trump EntertainmentTrump Entertainment Seeks Bankruptcy (Summary) February 17, 2009 Trump Entertainment Resorts Inc, filed for bankruptcy protection Tuesday for the third time in company history. Trump owns and operates three casino hotels in Atlantic City, New Jersey, including the Trump Taj Mahal, Trump Plaza and Trump Marina. According to Reuters, the company did not request debtor-in-possession financing to operate during its restructuring and said it would continue to run as normal. Trump had assets of about $2.1 billion and total debts of about $1.74 billion on December 31, 2008, it said in its filing with the U.S. Bankruptcy Court for the District of New Jersey. According to Bloomberg, the casino company said Dec. 1 it would skip its interest payment to conserve cash and hold talks with lenders on restructuring its finances. Holders of most of the company’s $1.25 billion in notes and Beal Bank Nevada, which is owed $490 million, agreed not to exercise default rights for interest or principal payments until 9 a.m. New York time today, a target they had extended four times. Donald Trump quit the company’s board on Feb. 13, saying he disagreed with bondholders’ decisions, including their rejection of a buyout offer he made. Bondholders “have indicated they are preparing to file an involuntary petition” for Chapter 11, today’s court filing says. Trump Entertainment has reported profit in just three quarters since emerging from bankruptcy in May 2005. The company’s 8.5 percent notes due June 2015 traded at 14 cents on the dollar Feb. 13, according to Trace, the bond-pricing system of the Financial Industry Regulatory Authority.
Trump Entertainment Defaults on Bond Payments (Summary) December 1, 2008 On Friday, casino operator Trump Entertainment Resorts Inc. (TRMP) announced that it will not pay its $53.1 million bond interest payment due December 1. This announcement reaffirms the struggles at Trump Entertainment, which posted a third-quarter loss of $139.1 million, $4.39 per share, on November 7. On November 8, Trump Entertainment announced that top executives would take a 5% pay cut. This announcement along with Friday’s statement is Trump Entertainment’s attempt to maintain liquidity during tough economic times in the gaming industry. Trump Entertainment's Credit Rating (Summary)Woes at Trump Entertainment have been reflected with S&P cutting Trump Entertainment’s corporate credit ratings from “B-minus” to “CCC” on November 11. S&P stated, “absent a substantial rebound in the Atlantic City market, a restructuring of Trump’s debt obligations is likely.” Nearly a month prior on October 13, Moody’s lowered its corporate family rating on Trump Entertainment to “Caa1” from “B3.” Potential Bankruptcy (Summary)Trump Entertainment is on the verge of its 2nd bankruptcy in 3 years. Trump Entertainment was restructured following a 2005 bankruptcy filing. Atlantic City’s gaming industry has suffered in the current economic environment, posting a nearly 23% decline in 3rd quarter earnings from a year ago. Web Articles:
**This is for informational purposes only. This is not a recommendation.** For bond pricing, call your APS Financial Representative at (888)422-0633
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