Friday 2nd January 2009

Billionaire entrepreneur Donald Trump has been given three weeks to reorganise the debts of his Trump Entertainment Resorts business which is drowning under a $1.75 billion debt mountain. The company has been hit particularly hard by a substantial downturn in gaming revenues in Atlantic City which fell by approaching 7% in 2008. As the casino industry is very much a volume related industry this reduction has impacted substantially on the group’s profitability.

The new agreement has been reached with holders of $1.25 billion in loan notes and the Beal Bank which may look to call in the company's $490 million funding position. This is not the first time that Donald Trump has found himself in a very difficult situation with his casino operation but while he has the experience to deal with such matters the economic backdrop is very different to anything in modern history.

Donald Trump is not the only casino entrepreneur to feel the chill of the economic downturn but the fact his business was very much centred around Atlantic City, where revenues are down markedly, has speed up the decline in his business. The next three weeks will be critical for the future of Trump Entertainment Resorts but only a fool would back against the perennial Phoenix rising from the flames again.

Source: Gambling.co.uk News