Bailout plan shelved for Donald
By JOHN CURRAN
Associated Press Writer
September 23, 2004
ATLANTIC CITY, N.J. -- A proposed bailout
of Donald J. Trump's casino company has been shelved, and Trump
now says he may take the company private.
Trump Hotels & Casino Resorts and investment
banker DLJ Merchant Banking Partners _ which announced the bailout
plan last month as part of a prepackaged Trump Hotels bankruptcy
_ said late Wednesday they had terminated discussions "by
In a prepared statement, Trump said the company was pursuing
restructuring proposals with its bondholders and that it "may
pursue a potential privatization of the company."
Neither Trump himself nor Trump Hotels Executive
Vice President Scott Butera returned calls seeking comment Thursday.
DLJ officials weren't talking, either. The
company, a private equity arm of Credit Suisse First Boston,
had no comment, according to Victoria Harmon, a spokeswoman
for Credit Suisse First Boston.
Trump has been searching for a way to save
his cash-strapped casino company for months.
The company, which operates three casinos
in Atlantic City, has $1.8 billion in debt and is so overburdened
with interest payments it has been unable to finance improvements
or expansions to keep up with Atlantic City competitors.
Under the proposed DLJ bailout, announced
Aug. 9, Trump would have surrendered his majority stake and
his title as CEO but left his name on the company and kept a
25 percent interest.
But Trump needed bondholders to sign off on
the restructuring, and they apparently were not ready to. Lisa
Gonzalez, a spokeswoman for Chanin Capital Partners, which represents
holders of Trump Casino Holdings bonds, declined comment.
In trading Thursday morning, shares of Trump
Hotels & Casino Resorts slipped 5 cents to 44 cents in over-the-counter
One analyst said it was unlikely Trump could
raise the money to take the company private. Without a cash
infusion, bankruptcy appears to be his only option, according
to casino industry analyst Jane Pedreira of Lehman Brothers.
"He's in a tough spot right now,"
said Pedreira. "If he has to file, his name will be in
the press for two years or however long it takes to get through
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