The lack of available credit has been hurting the majority of gaming companies in the country, and Donald Trump has been one of the hardest hit, although he is hardly a stranger to debts. Mr. Trump has been given through January 21st to restructure his casino debts through a forbearance agreement, and will most likely lead to a bankruptcy if he fails to meet the deadline. This would also be Donald Trump’s third bankruptcy since he sought public investment into his three Atlantic City casinos, Trump Plaza, Taj Mahal, and Trump Marina.
Richard Fields of Coastal Development LLC has already been in the process of purchasing Trump Marina, but the sale may be called off if lenders cannot be found to provide the funds needed. Trump Entertainment has already missed a $53.1 million bond interest payment, which was due in early December, and had to make us of a 30 day grace period to get the money. Trump officials were successful in negotiating the forbearance agreement, during the last week of the year. The company’s debts were said to be approximately 1.72 billion as of September 30th.
An analyst stated that he believed that Trump Entertainment would offer their bondholders a debt exchange, which would go into a prepackaged bankruptcy if it fails. He also said that Trump cannot cut the expenses fast enough, due to declining revenues at the casinos.
The problems are said to be partially due to the increasing competition of casinos in places such as New York and Pennsylvania, plus the economic issues currently being faced around the country.
Donald Trump’s holding has already fallen to roughly 25% due to previous bankruptcies.