Trump Casinos survive Bankruptcy yet again
Ever since last year when they declared bankruptcy for yet a third time, the Trump Atlantic City casinos have been in trouble. However, a judge’s decision will keep the casinos alive after the ruling allowed Donald Trump and Marc Lasry to reorganize the company and keep majority ownership.
Donald Trump, who retired as chairman of the board before Chapter 11 bankruptcy was declared, allied with the company’s largest bondholder in Marc Lasry to keep the company in their court. On the other side of the fence were billionaires Andy Beal and Carl Icahn who were looking to gain control of the company for themselves after securing hundreds of million of dollars in Trump casino mortgages. What ensured was a big court battle to determine who would take control of the company’s future. Trump was actually on Beal’s side to begin with before he switched to Lasry’s side thus causing even more controversy.
However, the controversy has subsided and Trump Entertainment was able to clear $1.3 billion off of their debt in addition to securing $225 million in new equity. The good news didn’t stop here for team Lasry/Trump since they will also get to keep the Trump brand after the reorganization. With the reorganization, Lasry will take Trump’s place as the new chairman of the board, and Trump will get to retain 10% of his shares in Trump Entertainment.
As mentioned before, this was the third time that the Trump casinos had to declare bankruptcy protection; the first time was in the early 1990’s while the second time came in 2004. With a new chairman of the board and setup in place, many people are interested to see if the Trump casino fortunes turn out any better after having suffered through three bankruptcies already.