Quits in dispute with creditors over debt-restructuring plan as Trump Entertainment speculated to be heading for bankruptcy protection
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."
Donald Trump resigns from board
February 17, 2009