Trump Entertainment Puts Bankruptcy–and $1.3B in Debt–in the Past
- Jul 19, 2010
July 19, 2010
By Barbra Murray, Contributing Editor
Seventeen months after overwhelming debt and a hobbled gaming industry led to its bankruptcy filing, Trump Entertainment Resorts Inc., along with a group of its subsidiaries, has exited Chapter 11 reorganization, leaving behind approximately $1.3 billion in debt. The newly reorganized Atlantic City, N.J.-based casino resort owner even gets to keep the Trump name on its Atlantic City casinos.
Trump Entertainment is the owner and operator of three Atlantic City casino resorts accounting for an aggregate 3,600 guestrooms. The group of properties consists of Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, both of which are on the city’s famed Boardwalk, and the Trump Marina Hotel Casino in the Marina District.
Trump Entertainment’s official emergence from bankruptcy came soon after the New Jersey Casino Control Commission green lighted the reorganization plan, which had also garnered the blessing of real estate mogul Donald J. Trump, who originally founded the company but resigned from its board just days before the Feb. 17, 2009 bankruptcy filing. Seventeen months has made all the difference. Trump Entertainment is now in good shape with $225 million of new equity, $125 million of which will be utilized to pay down pre-petition debt.
The reorganization plan has also put Mark Lasry, Chairman and CEO of global investment firm Avenue Capital Group–the firm that acted as lead bondholder while Trump Entertainment made its way through the reorganization process–in the position of Chairman of the Board of the new entity, as well as its largest shareholder. Mark Juliano is the company’s CEO, as well as a member of the new board. “Our company is now well-capitalized and possesses a long-term strategy for growth,” Juliano noted in a prepared statement. “Our new board of directors and ownership group have made it clear that they are dedicated to the success of the company over both the short and long terms.”
The gaming market has not yet recovered from the economic crisis, but some casino companies that fell victim to it and the credit crunch have managed to get back in the game. Earlier this month, Greektown Holdings L.L.C., owner of the Detroit, Michigan’s Greektown Casino, emerged from bankruptcy, minus $500 million in debt.