Trump Entertainment Pushed to Bankruptcy Tomorrow?
Bondholders are expected to force Trump Entertainment (TRMP: 0.00 N/A) into involuntary bankruptcy tomorrow, when the latest extension of a grace period ends.
The move signals an inability for officials from Trump Entertainment to reach a deal with creditors to restructure the casino operator’s debt. Citing the disagreements between the two sides, Donald Trump and his daughter Ivanka both resigned from the Trump Entertainment board of directors.
The resignations are a common move preceding bankruptcy, especially a forced one. Trump Entertainment missed a deby payment of $53.1 million on December 1st, then failed to find a way to resolve debts totalling $1.25 billion during the thirty-day grace period and three further extensions of deadlines.
The Wall Street Journal reported that insiders say bondholders will file for involuntary Chapter 11 bankruptcy as early as Tuesday. The board of directors has refused to file voluntarily to reorganize under bankruptcy protection.
Trump blamed the bondholders for putting the company in its current position, saying they “have made a series of bad decisions and encouraged wasteful spending, which has led to severe problems within the company.”
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