If Donald Trump files for bankruptcy, it certainly won't be the first time. For Trump Entertainment Resorts (NASDAQ: TRMP), the Donald has a deadline of today to renegotiated a $1.25 billion debt.
What's the big deal? It turns out that Trump Entertainment -- which owns the Trump Taj Mahal, Trump Plaza and Trump Marina in Atlantic City, missed a $53.1 million bond payment on December 1, and got a 30-day extension. The holders of 70% of Trump Entertainment's outstanding senior secured notes due in 2015 agreed to wait until today to exercise their rights related to the missed bond payment. And today is the day for coming to terms on another loan as well. The lenders involved in a $490 million loan agreement also agreed to wait until today to exercise their rights.
If Trump Entertainment files for bankruptcy today, it will only be the fourth time it's done so since 1991. The weak economy is not helping Trump Entertainment. In 2008, sales at The Taj Mahal fell 5.1%, those at Trump Plaza dropped 6.4% and Trump Marina sales fell 15.8%. One analyst thinks that Trump will get another extension on his payment.
If he does file for bankruptcy, it would be fitting for the Donald's board to sit him down in the board room and tell him he's fired. After all, the stock is down 93% in the last year. But that will never happen.
Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.
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Reader Comments (Page 3 of 3)
1-22-2009 @ 3:55AM
Willis Fraley Jr said...
He always bites off more thna he can chew, just his way and his nature, he needs to take some of that money and get him a good hair wig????Get his show back on the air it did real good in the ratings, oh by the way Donald--- YOUR FIRED!!!!!
1-22-2009 @ 4:26AM
Onezik said...
Maybe the Trumpman needs to require his casino staff to take customer service seriously so he can stop the habitual bankruptcy filings. I took my casino-addicted cousin and his employee from Nebraska to Taj Mahal in October. We spent a couple of hours playing slots and could you believe we were not served ANY drinks. I complained to a janitor, cashier, well-dressed casino employee, slot machine attendant and even the waiters. None of them was able to have us served. We spent a few thousand bucks with absolutely nothing to drink. Oh, we did not win either. They get treated like royals in the council bluffs casino in Iowa which is off Nebraska border. They went back to Nebraska with a negative view of Atlantic city casinos .Shame on Taj Mahal!
1-22-2009 @ 5:20AM
john said...
I think we all should file bankruptcy and do like the rich, Walk away from our debts and start over. Filing four times is 18 years, should not be allowed.
1-22-2009 @ 11:13AM
Larry said...
About time he dissapears into the sunset
1-22-2009 @ 5:42AM
daang7601 said...
Trump trying to take advantage a hand-out and protection of Bankruptcy... It's a way Corporates pulls out safely to protects their wealths at the same time have their mommy the Federal Reserve to STEAL and ROB money for them... So expect to also see Trump on the bailing lists soon...
1-22-2009 @ 7:00AM
Clarence Williams said...
The so-called Donald gets trumped again??......bolony! Just another publicity stunt for the Trump--ets and Trump--eteers to blow on.
1-22-2009 @ 7:14AM
gcman1947 said...
he should of done this while his president was in office wrong time now.
1-22-2009 @ 7:14AM
neuticles said...
"the donald"?
what an obnoxious title.
1-22-2009 @ 10:23AM
rich said...
trump got trumped !!! he still has enough net value that we can only dream of !!!
http://www.youtube.com/watch?v=e7vb1ZtmMIE&feature=channel_page
goldieshouse.piczo.com
http://www.youtube.com/watch?v=8A7tftOfLdg&feature=channel_page
1-22-2009 @ 11:44AM
Michael Magri said...
Trump inherited something like 10,000 apartments from his Daddy. He has done nothing substantive on his own. He is, however, very good at two things, getting divorced, and going bankrupt. Am I missing something?
1-22-2009 @ 10:44PM
Steve said...
What a joke. An American Icon pretending he is a business Guru. Used as role model for the idol worshippers.
1-23-2009 @ 8:01PM
Scarlett said...
Trump will be fine. For all you negative evil jerks on here....eat your heart out, and as for the ones the like Rosie....take a long walk off a short bridge, and go suck with Rosie....she is your style...all fat and flab and mouth...matter of fact maybe thats why you like her..ducks of a feather flock together....haha..
Long Live Trump
1-24-2009 @ 10:32AM
kenloebel said...
I guess a Trust that protects personal assets works pretty well - look how many times he has filed - it is just a negotiating tool used by corporate hacks that can't run legitimate businesses -
I'D FIRE YOU!
1-24-2009 @ 10:37AM
kenloebel said...
Since the Goverment is collectively US- the tax payers,
I say we demand immediate repayment from the likes of this dude - and if he can't repay, we have a lien on all of his personal assets - we the Tax Payers ( not the public servants)
Let's also get rid of the "public servants" who have abused their service to us, and let's send them packing to Ethiopia for a decade or however long it takes to recover - - maybe they will come back wil an appreciation for America, rather than an Arrogance that defies gravity.
1-26-2009 @ 11:30AM
Steve said...
The deadline was Jan. 21. Today is Jan. 26. No announcements yet on any declaration of bankruptcy for Trump.
1-27-2009 @ 12:26PM
ebizguruz said...
I wouldn't shoot Donald ... but any sucker dumb enough to invest in this yayhoo's next venture should probably eat lead ...
2-09-2009 @ 9:12PM
jp said...
Trump spends other peoples money. I would like to see this big mouth go bust. I wonder how long it would take his wife to leave
3-04-2009 @ 4:11PM
Alan Salisbury said...
That-a Boy, Donald. Take a giant dump on the non believers