Donald Trump Quits Board as Bankruptcy Looms
The founder of Trump Entertainment (TRMP: 0.40 0.00%), Donald Trump, resigned this weekend from the board of the troubled casino operating company. The resignation followed weeks of negotiations with bondholders to restructure debt.
Trump could not come to terms with the company’s creditors in seeking to refinance $1.25 billion in debt owed by Trump Entertainment. He said bondholders would neither sell the company to him nor accept his offers to repay existing debt.
Trump said, “I strongly disagree with the bondholders’ decisions and actions. Part of the reason that these bondholders can’t make a deal is… they’ve lost so much money on this deal, and they’re probably going to lose so much money on other deals, that my impression is they don’t care.”
Bloomberg reports that Trump’s exit from the gaming company may endanger the sale of the Trump Marina Casino to Coastal Marina, a deal already entangled in financing problems. Trump Marina’s price had been lowered to $270 million, still quite a bit of cash for the cash-starved company.
Trump’s daughter, Ivanka Trump, also resigned from the Trump Entertainment board. Donald Trump said he was “not thrilled” over the prospects of the company retaining his name.
Join the forum discussion of this news story - (2) PostsRelated posts:
