By Beth Jinks and Dawn McCarty http://www.bloomberg.com/apps/news?pid=20601103&sid=aTIHOtoyNszA&refer=us
Feb. 17 (Bloomberg) -- Trump Entertainment Resorts Inc., the casino company founded by Donald Trump, filed for bankruptcy after annual gambling revenue in Atlantic City, New Jersey, plunged the most on record. The petition for Chapter 11 bankruptcy, filed four years after its predecessor company failed, listed less than $50 million in assets and less than $500 million in debt, according to a petition filed today in U.S. Bankruptcy Court in Camden, New Jersey. Nine affiliates including Trump Plaza Associates, Trump Marina Associates and Trump Taj Mahal Associates also sought protection. An exhibit attached to the petition said the companies had consolidated assets of $2.1 billion and debt of $1.7 billion as of Dec. 31. Trump Entertainment, the owner of three casinos in Atlantic City that already have been through bankruptcy twice, missed a $53 million interest payment at the start of December, and a creditor-extended grace period to make the defaulted coupon payment expires today. Donald Trump quit the company’s board on Feb. 13, saying he disagreed with bondholders’ decisions. He said bondholders turned down an offer he made to purchase the company. Largest Creditors The twenty largest consolidated creditors without collateral backing their claims are owed about $1.32 billion, court papers show. U.S. Bank NA, as agent for noteholders, is listed as the largest unsecured creditor with a claim of $1.31 billion. Other unsecured creditors include: Bovis Lend Lease Inc., with a claim of $7.5 million; Thermal Energy Limited 1, with a claim of $1.9 million; Hess Corp., with a claim of $1.4 million; and Casino control Fund, with a claim of $1.1 million. Trump Entertainment has reported profit in just three quarters since emerging from bankruptcy in May 2005. Gambling revenue in Atlantic City fell a record 7.6 percent in 2008, its second annual decline, as the recession deterred gamblers and slot-machine competition from nearby states wooed others. The casino company said Dec. 1 it would skip payments 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. Long-Term Debt Trump Entertainment had $1.72 billion in long-term debt as of Sept. 30, according to a regulatory filing. In December 2007, the company received a $500 million loan from Beal Bank Nevada, a Las Vegas-based affiliate of Dallas-based Beal Bank. Trump, 62, is a real estate developer and stars in the television show “The Apprentice.” Trump controls about 28 percent of Trump Entertainment’s stock, according to a March 21 regulatory filing. His daughter, Ivanka Trump, also quit the board last week. Merrill Lynch & Co. was hired last year to find a buyer for the company, without success. Trump Entertainment emerged from bankruptcy 3 1/2 years ago. Its predecessor, Trump Hotels & Casino Resorts Inc., sought court protection in November 2004. It had lost money for nine years because of high interest payments that Trump claimed prevented the company from refurbishing and expanding its casinos. The three casino resorts also went through bankruptcy in the 1990s. Trump Entertainment’s market value has tumbled to $7.3 million from its peak at $842 million in August 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. Tom Hickey, a spokesman for Trump Entertainment, didn’t immediately respond to a call seeking comment. -- Gregory S. Williams gregwilliams(at)knology.net k4hsm(at)knology.net http://www.etskywarn.net http://www.twiar.org http://www.icebearnation.com *********************************** * POST TO [email protected] * *********************************** Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
