Trump Extended A Lifeline On Casino Loan Interest Payment

Trump Entertainment has been extended a lifeline, although it is a short one. The company received some holiday relief on Wednesday when they were granted an extension on an interest loan payment that has already been extended once.

Trump Entertainment had thirty days from December 1st to make an interest payment on a loan that they were in default of. The company reached an agreement with the lenders just hours before that deadline passed.

They now will have until January 21st to either make the payment or restructure the loan. The common opinion is that the company is desperately trying to restructure the loan. A regulatory filing by the company revealed the forbearance on Wednesday.

If the payment is not made, the lenders will have the right to demand a quick repayment of the loan. In addition to that, the outstanding principles on the loan gained the right to accelerate the notes maturity.

The original amount of the loan was for $490 million. The company has three weeks to try and come up with a restructure plan. They have been in discussions with the lenders the past several weeks.

Whatever the outcome of the payment agreement, Trump will be having to deal with an Atlantic City casino market that has dried up. The economy has casinos all across the US struggling to survive.

January 1, 2009
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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