Trump Casino Debt Saga Continues With Yet Another Extension

Trump Entertainment is trying to do whatever is necessary to ensure that they save their three Atlantic City casinos. Apparently one thing they have learned from The Donald himself is how to use stall tactics.

On Wednesday, the company received another extension to negotiate with bondholders on a debt restructuring. It is the fourth time since December when the initial payment was due that an extension has been granted.

"There is a restructuring plan the bondholders and the company hope to agree to, but we're not there yet," said Chief Executive Officer of Trump Entertainment, Mark Juliano. The question now begs asking, when will they get there?

The company and bondholders have been negotiating for several months. Every time a deadline is approaching, the two sides say they are getting closer to an agreement. Then, nothing happens until the next deadline.

The grace period for a payment to be made expired on the last day of December in 2008. Since then, there have been three separate extensions. One was a twenty one day extension, another fourteen, and the last two have been seven day extensions.

The ultimate goal of the company is to avoid bankruptcy, but that does not look likely. There is a strong possibility that any deal made with bondholders would have to come with some form of bankruptcy protection.

February 12, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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