ATLANTIC CITY, NJ—Recent regulatory filings by Trump Entertainment Resorts have some gaming observers speculating that a bankruptcy filing or a restructuring may be in the cards for the company.
Multiple press reports indicate that there is some talk that a bankruptcy filing could be in the offing. As of June 30, Trump Entertainment's subsidiary had more than $285 million in debt secured by the Trump Taj Mahal and the soon to be shuttered Trump Plaza and in Atlantic City.
The Trump Entertainment subsidiary entered into a forbearance agreement with its main lender in late June, stating it would have been unable to make a recent interest payment on the debt, according to Alex Bumazhny, a casino analyst at Fitch Ratings. Trump Taj Mahal recently told regulators it plans to indefinitely defer payment of its property taxes, according to the Press of Atlantic City.
“Between paying interest payments and property tax it looks like the company overall is having a cash-flow crunch, hence a potential bankruptcy filing,” Bumazhny says of Trump Entertainment Resorts.
Trump Taj Mahal indicated in a quarterly report released in August that a restructuring may be planned. See story in the Press of Atlantic City.
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