Trump Entertainment Resorts, Inc. (Pink Sheets: TRMPQ) is a holding company which owns and manages its own casinos/hotels in Atlantic City, New Jersey. The company was formed in 2005 as a result of the restructuring of its predecessor, Trump Hotels & Casino Resorts. Donald J. Trump was Chairman of the Board until his resignation on February 14, 2009[1] and Mark Juliano is President and Chief Executive Officer. On February 17, 2009, the company filed for Chapter 11 bankruptcy.
Financials
In 2004, Trump Hotels & Casino Resorts explored various options for restructuring its debt, amid speculation that it might file for bankruptcy. A possible arrangement with Credit Suisse First Boston was not completed because the bondholders rejected it.[2]
On October 21, 2004, the company announced a preliminary agreement with its investors. Trump, who has been the majority owner, would reduce his stock ownership from 56 percent to 27 percent. Bondholders would surrender some of their debt in exchange for stock. On October 27, the company announced that Morgan Stanley would be the joint lead arranger for a financing of $500 million financing as part of the restructuring plan. On November 21, the company filed for bankruptcy. Trump said the filing was "really just a technical thing" as the best way to implement the restructuring plan.[3] The plan was submitted to the Bankruptcy Court on December 16, 2004.
After the 2004 bankruptcy filing, the company changed its name to Trump Entertainment Resorts.
On May 18, 2007 the company announced that it was in the preliminary stages of negotiating a buyout with several public and private firms. On July 2, 2007 Trump Entertainment Resorts announced that they could not make a deal with any company that they were in talks with and decided to take itself off the market. The company planned to lay off employees in order to cut costs. [4]
On February 17, 2009, the company filed for Chapter 11 bankruptcy protection, in the face of multi-billion dollar debts.[5] Nine affiliates of the casino operator, including Trump Plaza Associates, Trump Marina Associates, and Trump Taj Mahal Associates, also filed at the same time.[6]
Casinos
As of February 2009, the company owned and operated three casinos in Atlantic City: Trump Taj Mahal Casino Resort and Trump Plaza, both of which are located on the Boardwalk, and Trump Marina Hotel Casino (formerly "Trump's Castle") in Atlantic City's Marina District. In February 2009, the company was in the process of selling the Trump Marina to Coastal Marina LLC for $270 million.[7] The sale was first announced in May 2008, at the price of $316 million. The property is to be re-branded as a Margaritaville Resort.
Beginning in 2007, the Trump Taj Mahal Casino Resort underwent a $240 million renovation and addition of a new hotel tower.[8] The 800-room Chairman Tower opened in the summer of 2008.[9]
Trump Entertainment managed the Trump 29 Casino for the Twenty-Nine Palms Band of Mission Indians but disagreements plagued Trump's relationship with the tribal council. On December 22, 2004, the company entered into a memorandum of understanding with the tribe to end the management agreement.
In April 2005, the company announced that it would not proceed with its plans to build a casino in the Orange County, Indiana town of French Lick. Blue Sky Casino was the sole bidder for the gaming license for the casino, which had been abandoned by the company because it was insolvent and facing bankruptcy, with over $1.3 billion of 11.25% First Mortgage notes secured by the Taj Mahal and Trump Plaza coming due in April 2006.
In April 2007 the company sold the Trump Casino Hotel, a riverboat casino in Gary, Indiana. [8]
Donald Trump's role
Trump's well-known name and image are used extensively by the company in its marketing. He conducts his business interests in real estate and other non-casino ventures via the Trump Organization which is a separate entity from Trump Entertainment Resorts.
References
- ^ Trump Quits Trump Entertainment as Debt Payment Deadline Looms
- ^ Lore Croghan (September 24, 2004). "Trump Hotels says deal with Credit Suisse First Boston is dead". Daily News. http://www.accessmylibrary.com/coms2/summary_0286-6235364_ITM.
- ^ "Trump casinos file for bankruptcy; 'Apprentice' star's firm seeks protection from creditors". Associated Press. November 22, 2004. http://msnbc.msn.com/id/6556470/.
- ^ William Spain (July 2, 2007). "No Trump Entertainment deal; shares plunge". MarketWatch. http://www.marketwatch.com/news/story/trump-entertainment-shares-plummet-no/story.aspx?guid=%7B94B3DE7D%2D5F9C%2D4F6B%2D87AE%2D43EC0A68CC1A%7D&siteid=yhoof.
- ^ "[http://news.findlaw.com/hdocs/docs/trump/trumpcasinoch11pet.html Donald Trump's Casino Group Files for Bankruptcy Under Chapter 11]". FindLaw (FindLaw). February 17, 2009. http://news.findlaw.com/hdocs/docs/trump/trumpcasinoch11pet.html.
- ^ Kyle Peterson (February 17, 2009). "Trump Entertainment files for bankruptcy". Reuters. http://www.reuters.com/article/industryNews/idUSTRE51G3PP20090217.
- ^ Beth Jinks (February 17, 2009). "Trump Entertainment, Facing Payment Due, May Seek Bankruptcy". Bloomberg. http://www.bloomberg.com/apps/news?pid=20601103&sid=aXx3Qw4nGQfo&refer=us.
- ^ a b Gary Rivlin (April 10, 2007). "Trump tries to work new magic at aging Atlantic City casinos". International Herald Tribune. http://www.iht.com/articles/2007/04/10/business/trump.php.
- ^ Chuck Darrow (February 4, 2009). "Detailed look at city's 11 gaming halls". philly.com. http://www.philly.com/philly/hp/news_update/20090204_Detailed_look_at_city_s_11_gaming_halls.html.
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