Trump Casinos survive Bankruptcy

Things have not gone well for the Trump casinos in recent years as Trump Entertainment Resorts had to declare its third bankruptcy in 2009. However, the good news for the company founded by billionaire Donald Trump is that the casinos will emerge from bankruptcy once again.

CEO Mark Juliano commented on the good fortune by saying, “Our company is now well-capitalized and possesses a long-term strategy for growth. Our new board of directors and ownership group have made it clear that they are dedicated to the success of the Company over both the short- and long-terms. We are excited about the new chapter that begins today for Trump Entertainment Resorts.”

The problems started for the Trump Casinos (includes Trump Plaza, Trump Marina, and the Taj Mahal) when gaming revenue slid across the board in Atlantic City due to the recession. Already billions of dollars in debt, Trump Entertainment Resorts had no choice but to declare for its third bankruptcy. Donald Trump, who was the former chairman of the board, resigned from his position just before bankruptcy was declared.

Further turmoil has been added by billionaires Marc Lasry (the largest bondholder in the company) and Andy Beal (owns the secured debt for the company) squaring off over which direction the company should take. Trump ended up siding with Lasry as the two sides went to court over the company’s future; Lasry/Trump won out with the company now being reorganized.

Since the reorganization, about $1.3 billion in debt has been eliminated, and $225 million in new equity has been added. Trump’s old stake in the company is now gone although he will eventually receive 10% of the company when the reorganization of the company is finalized.

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