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Trump to Take Balls and Go Home?
NEW YORK, NEW YORK --
Casino and real estate magnate Donald Trump has been licking his wounds lately as his company, Trump Entertainment Resorts, has plummeted in value over the last year. The stock, which was as high as twenty-two dollars a share in late 2006, now is worth only twenty-one cents, a penny on the dollar.
Further, Trump Entertainment missed a scheduled interest payment earlier this month, in the amount of $53.1 million. Frantic negotiations are being conducted by the casino to reschedule its debt before the end of a thirty-day grace period on the bond interest.
Trump, who owns twenty-four percent of the business, is thinking about taking the company private, to protect it from speculators and stabilize its liquidity.
Trump Entertainment controls three casinos in Atlantic City, a town whose entire gambling industry has suffered declining revenues month after month. The company has $1.7 billion in debt.
Trump publicists were quick to point out that he does not manage nor run the company, and his ownership in it is less than one percent of his personal wealth.
Still, a second bankruptcy of an enterprise bearing his name would be a personal embarrassment for Trump, and one he would like to avoid if possible. With neither real estate nor casinos prospering as an industry during the ongoing recession, Trump does not wish to appear vulnerable in the eyes of public opinion.
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Recent Comments
| Posted by Donald Trump on 12/29/2008 07:01:07 PM EST |
Of course I'm gonna this thing public. I've got billions of cash in the bank!
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