In a sign of the times it has been confirmed that Atlantic City based Trump Entertainment Resorts, Donald Trump's casino operation, will miss a $53.1 million bond interest payment due on 1 December in order to maintain liquidity for the group. The company is in suggesting there is a 30 day grace period during which time they will attempt to restructure the company's debt situation and try to relieve any short-term pressure.
Unfortunate, the company also suggested that there is no guarantee that an agreement can be reached which would push the company into serious financial difficulty. This is occurring at time when casino revenues in the area have dropped by 9.9% to $346.2 million in October compared to the same period last year. This is now officially the worst drop in casino takings for 30 years and there are some experts suggesting the situation will get worse before it gets better.
Those who follow the lively business career of Donald Trump will know that the Trump Entertainment operation has only been around for three years having been created when Trump's last casino operation went into bankruptcy in 2005. The future yet again is bleak for the casino sector in Atlantic City and many other areas of the US with money tight, customer numbers down and increasing cash flow problems.