Trump Angling Towards Grace Period For Casino Interest Payment

Donald Trump is one of the most successful businessmen in the world. That does not mean, however, that his companies are immune to the financial problems that the United States is currently experiencing.

Trump Entertainment Resorts Inc. announced on Friday that they will be taking advantage of a thirty day grace period for a $53.1 million bond interest payment. The payment is due on December 1st, but will not be made on time.

The company claims they are delaying the payment to ensure that they "maintain sufficient liquidity" in these difficult times. The liquidity is necessary at a time when many companies are starting to close the doors on their businesses.

Trump will have thirty days after December 1st to try and negotiate a deal with the lenders. They have said that their goal is to renegotiate the terms of the original agreement. There is no guarantee that an agreement will be reached.

In the past year shares of Trump Entertainment have dropped from $5.70 to $.31. The company is hoping, much like others in the casino industry, that a change in administrations that is coming in January will help revive the economy in the United States.

"Trump Entertainment needs the casino industry to turn around quickly or they could be facing the same fate that has already doomed several smaller companies," said Mario Blumbuergo.

November 30, 2008
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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