Trump Entertainment may file bankruptcy
February 17, 2009 · Posted in Business
Trump Entertainment Resorts Inc, Donald Trump’s casino group, is expected to file Tuesday for bankruptcy, The Wall Street Journal reported.
The company’s board was scheduled to meet late Monday night to decide whether to authorize the filing, the newspaper reported in its online edition. Otherwise, the casino operator would be forced into bankruptcy involuntarily by creditors, the newspaper said.
Such a filing would mark the third appearance in bankruptcy court for Trump Entertainment, which most recently emerged from bankruptcy proceedings in 2005, the newspaper said.
Trump’s recent move was already a harbinger of this:
Real estate tycoon Donald Trump said on Friday he has decided to resign from the board of Trump Entertainment Resorts (TRMP.O) due to disagreements with bondholders who want the casino group to file for bankruptcy.
Trump, chairman and founder of the firm, said in a statement that he will leave amid “internal turmoil” that was being “compounded by dramatically deteriorating revenues.” His daughter Ivanka Trump is also resigning, he said.
The statement did not say when Trump’s resignation would be offered or take effect.
Trump’s announcement comes after the company missed a $53.1 million bond interest payment due on December 1 as a sharp downturn in consumer spending hit casino revenues.
Trump said the company represents less than 1 percent of his net worth, and that “my investment in it is worthless to me now.”
The Wall Street Journal reported on Friday that bondholders are planning to force the company into involuntary Chapter 11 bankruptcy early in the coming week, a move Trump has resisted.
There is a lot more to be liquidated in Trump’s empire. One thing is for sure: The banks will not lend him any more money or extend credit lines to wreck more projects. Donald Trump is and has always been a lousy entrepreneur. An excessive credit expansion helped him cover it up. Now credit is contracting. This The golden days are over for “The Donald”.