Bondholders Win Right To Gamble Against Trump For Casino Company

Donald Trump had tried to but Trump Entertainment Resorts at the beginning of the year, but bondholders did not want to sell him the company that bears his name. Trump waited until the company went bankrupt, and he placed an offer to buy the company.

Bondholders still were unhappy that Trump was being allowed to purchase the company, and they asked for the right to place a competing offer. On Friday, a judge in the bankruptcy case granted the bondholders their wish.

Now, there will be two reorganization plans that will be submitted. Trump's bid for the company was $100 million. The bondholder plan is for $175 million. It will now come down to which plan the judge, Judith Wizmur, finds more suitable to help the company escape bankruptcy.

"Even though the bondholders are offering more money for the company, there is a chance that Trump's plan will better suit the needs of Trump Entertainment," said observer Xavier Gomes, "That is what the judge will have to decide when she looks at both plans."

There is also the chance that another bid will come in for the company. That seems unlikely, however, with the company deep in debt. If no other offers come in, Judge Wizmur will decide the company's fate on October 29th.

Trump had said when he made his offer that he is committed to once again making Atlantic City what it once was when it comes to casino gambling. In the past few years, the economy and competition from other states have seriously changed the casino gambling climate in New Jersey.

August 29, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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