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, formerly known as Trump Hotels & Casino Resorts, was formed in 2005 as a result of the restructuring. Donald J. Trump served as Chairman of the Board of Directors, a position of which he stepped down from on February 14, 2009[1] and Mark Juliano is Director and Chief Executive Officer. On February 17, 2009, the company filed Chapter 11.
On Monday, August 3rd 2009 it was announced that Donald J. Trump and Beal Bank Nevada, an affiliate of Dallas, Texas-based Beal Bank, would acquire Trump Entertainment Resorts. Once completed, Trump Entertainment Resorts will become a private company.[2]
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.[3]
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.[4] 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. [5]
On February 17, 2009, the company filed for Chapter 11 bankruptcy protection, in the face of multi-billion dollar debts.[6] Nine affiliates of the casino operator, including Trump Plaza Associates, Trump Marina Associates, and Trump Taj Mahal Associates, also filed at the same time.[7]
On August 4, 2009, Donald J. Trump and Beal Bank Nevada, an affiliate of Dallas, Texas-based Beal Bank, announced that they had offered to buy Trump Entertainment Resort in a deal worth $100 million. [8]
Donald Trump's role
Since becoming a public company back when it was known as Trump Hotels & Casino Resorts, Donald Trump has licensed his name, likeness and image to the company for its marketing. Trump's non-casino ventures, which include his real estate holdings, are conducted through his Trump Organization. This company is a separate entity from Trump Entertainment Resorts and is wholly owned by Donald Trump himself.
References
- ^ Trump Quits Trump Entertainment as Debt Payment Deadline Looms
- ^ http://www.philly.com/philly/wires/ap/news/state/new_jersey/52393032.html
- ^ 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.
- ^ Jonathan Berr (August 4, 2009). "Donald Trump needs a magic wand to save casino empire". DailyFinance. http://www.dailyfinance.com/2009/08/04/donald-trump-needs-a-magic-wand-to-save-casino-empire.
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