Trump Entertainment to miss bond interest payment

November 30, 2008 by · Leave a Comment
Filed under: Stock Market News 

No one in immune in this market, not even the Donald & Co.  Knowing our government, we will see us bailing out the casinos.  Wouldn’t that be some irony?  My only question is who will be bailed out this week and how much will it cost?  

Last I heard, this bailout has added $24,000 per citizen in public debt.  Why are we taking on this size of debt to bail out companies but nothing to directly help the actually people being affected or financing this burden?  This does not seem very democratic to me.

News:

Casino operator Trump Entertainment Resorts Inc said on Friday it will not make a $53.1 million bond interest payment due on December 1 in an effort to “maintain sufficient liquidity.”

Trump said a 30-day grace period will apply to the missed interest payment and that during this period it will pursue discussions with lenders to restructure the company’s capital structure.

 The Atlantic City-based casino company said there can be no assurance that any agreement will be reached.

Revenue at Atlantic City’s casinos dropped by 9.9 percent to $346.2 million in October from a year ago as the national economic downturn deepened the gambling industry’s woes.

The October decline followed a 15.1 percent plunge in September, the biggest overall fall in gaming revenue in the 30-year history of New Jersey’s gambling capital, according to the state’s Casino Control Commission.

Trump Entertainment, chaired by property magnate Donald Trump, was created out of a bankruptcy restructuring in 2005.

Its shares have fallen from $5.70 last December to a close of 31 cents on Friday.

Source: Reuters

 

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