Donald Trump resigns from board
February 17, 2009
Casino mogul Donald Trump has resigned from the board of
directors of Trump Entertainment Resorts Inc., reportedly in a dispute with
creditors over a $1.25 billion debt-restructuring plan.
"Some time ago, I made an offer to buy the company in the hopes that I might be able to reverse its fortunes, but the bondholders turned me down," Trump said in the statement. "Now I will study and watch as the horrible and outrageous fees being paid to lawyers and consultants will suck the blood from the company."
Trump Entertainment, operators of the Taj Mahal, Trump Plaza and Trump Marina in Atlantic City, has some $1.7 billion of debt, of which about $1.2 billion is bond debt. Trump owns 28 percent of Trump Entertainment and is its largest shareholder.
After having the deadline extended on several occasions, the company has missed a $53 million interest payment. Bondholders are likely to force Trump Entertainment into involuntary bankruptcy protection if the company misses the payment again.
"I will give strong consideration to saving what was once a great casino hotel operation that bore my name," he said. "But unfortunately, it is clear that I will have to work from the outside - the existing bondholder control will not permit a brighter future."
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