Trump Without Trump!!

Donald Trump has walked out of Trump Entertainment!

And according to Bloomberg news bankruptcy is possible: Trump Quits Trump Entertainment, Bankruptcy Possible

On Businessweek, Chris Palmeri highlights Donald Trump's official statement. Trump Steps Down from Casino Empire.

Yes, Donald considers his investment in Trump Entertainment Resorts as worthless!

• “Based on the fact that I am not involved in the management of Trump Entertainment Resorts and that I strongly disagree with the bondholders’ decisions and actions, past and present, with respect to the company, and despite the fact that it currently has the right to use the name Trump for limited purposes, I have decided to resign from the Board of Directors. Moreover, the company has represented for quite some time substantially less than 1% of my net worth, and my investment in it is worthless to me now. I want to leave what I believe will become a highly volatile situation and focus on the many other opportunities that are available to me in these very troubled but exciting times.”
  
  “During the past number of years, in exercising their oversight authority, the bondholder’s representatives have made a series of bad decisions and encouraged wasteful spending, which has led to severe problems within the company. The company is no longer operated to a standard consistent with other of my holdings, in particular, my real estate portfolio, and after dealing with bondholders of the company for an extended period of time, I sense no indication that this will change. I no longer wish to remain a member of the Board of Directors of a company that is controlled by representatives of the bondholders. My daughter, Ivanka, has chosen to resign as well. I will have certain ongoing contractual relationships with the company for a time, which I intend to abide by, and will monitor the situation and protect my rights as required.
  
  “While The Trump Organization grows and flourishes, Trump Entertainment Resorts, of which I am a stockholder, has languished. The Trump Organization’s portfolio of residential, commercial, hotel, and golf properties has expanded all over the world, while Trump Entertainment Resorts has yet to diversify outside of Atlantic City. I have watched the collapse in enterprise value of the Atlantic City Tropicana, where bondholders’ values have been reduced to almost nothing. I do not want to take part in a similar fiasco here.
  
  “Some time ago, I made an offer to buy the company in the hopes that I might be able to reverse its fortunes, but the bondholders turned me down. Now I will study and watch as the horrible and outrageous fees being paid to lawyers and consultants will suck the blood from the company. This internal turmoil will be compounded by dramatically deteriorating revenues across the board for casino companies in Atlantic City as the market tanks and competition from local markets grows. Again, look what has happened at the Tropicana.
  
  “These are very tough times in Atlantic City. Almost every company is in serious financial trouble. Despite this, I will be watching closely and at some point in the future, I hope to return. I have many friends in Atlantic City and have great respect for the Casino Control Commission and other representatives of the State of New Jersey. Even though I am relinquishing my position on the Board of Directors, I remain very concerned about Trump Entertainment Resorts. I will give strong consideration to saving what was once a great casino hotel operation that bore my name. But unfortunately it is clear that I will have to work from the outside — the existing bondholder control will not permit a brighter future.”

The troubles in Trump Entertainment Resorts had been highlighted before in past blog posting here: Betting On The Casino Industry?

Betting On The Casino Industry?

Posted on Marketwatch: Trump Entertainment to miss interest payment

• CHICAGO (MarketWatch) -- Facing tough competition and sliding revenue amid the economic meltdown, Trump Entertainment Resorts will have to skip a $53.1 million interest payment scheduled for Monday on its 8.5% senior secured notes due 2015 in order to maintain sufficient liquidity.
  
  The Atlantic City, N.J., casino operator, with about $1.25 billion worth of the notes outstanding, said late Friday that it has a 30-day grace period to pay up and will meanwhile seek talks with its lenders to revamp its capital structure and improve its liquidity.
  
  A panel of independent directors will oversee the talks, the company said.
  If it doesn't make the payment in the 30-day grace period, Trump Entertainment said, holders of a quarter of the notes and lenders under a $490 million senior secured loan to a company subsidiary will be able to accelerate the maturities of those obligations.
  
  Donald Trump, the television personality and New York real estate investor, is non-executive chairman and the largest shareholder of Trump Entertainment, which operates three Atlantic City casinos: The Trump Taj Mahal and the Trump Plaza on the Boardwalk and the Trump Marina in the Marina district. The last is being sold to Coastal Development for $270 million in a deal that has seen the price lowered and the closing deadline delayed.
  
  Trump Entertainment "is separate and distinct from Mr. Trump's privately held real estate and other holdings, which the company understands encompasses substantially all of his net worth," the company said.
  
  After his casinos twice ran into bankruptcy, Trump was removed from having any operating role in them as part of the deal that brought the company out of Chapter 11 the last time around.
  
  And it could happen again: Earlier this month, Fitch Ratings warned that after the company drew a remaining $25 million available on its credit facility this quarter to help fund an expansion, "it will have little to no access to committed external funds."
  
  The ratings agency also said that "given Trump's heavy debt load and the expected operating pressure in Atlantic City over the next 12 months, it is crucial for Trump to close the Trump Marina sale in order to avoid a restructuring, in the absence of another transaction."
  
  On Nov. 7, Trump Entertainment reported that it swung to a third-quarter loss of $139.1 million, or $4.39 a share, from a profit of $6.6 million, or 21 cents, in the year-earlier period. Continuing operations produced a loss of $3.49 a share against profit of 7 cents. Revenue fell 8.4% to $198.3 million.
  
  The company cited slower consumer spending, competition from Pennsylvania, and a smoking ban as the primary factors in the latest results. The number of customers was relatively stable, but spending per person declined, the company said.
  
  The company said then that it was controlling its costs and that its 21 top-paid executives had agreed to a 5% salary cut.
  
  Shares of Trump closed at 31 cents Friday, giving the company a market capitalization of approximately $10 million. The stock price scraped as low as 25 cents earlier this month after trading near $6 this time last year. (read rest of article: here )