he entertainment mogul owns a 24 % stake in the casino operator, which missed a us$ 53.1 million bond interest payment earlier this month. The company had no immediate comment on the report.
A 30-day grace period on the interest payment runs out at the end of December. The company has said it would pursue discussions with lenders to restructure its capital structure over the period. Although he is the group’s non-executive chairman, Trump has no managerial role at the company, which represents less than 1 % of his net worth, the FT reported.
The group, which operates three properties in Atlantic City, is saddled with us$ 1.7 billion of debt, of which about us$ 1.2 billion is bond debt, it said. Revenue at Atlantic City’s casinos dropped by 9.9 % to us$ 346.2 million in October from a year ago as the national economic downturn deepened the gambling industry’s woes.
The October decline followed a 15.1 % plunge in September, the biggest overall fall in gaming revenue in the 30-year history of New Jersey’s gambling capital, according to the state’s Casino Control Commission. Trump Entertainment was created out of a bankruptcy restructuring in 2005.
Casino companies have suffered over the past year as the gambling boom in Las Vegas fizzled and tight credit markets jeopardized growth plans. On November 7, Trump Entertainment posted a third-quarter net loss of us$ 139.1 million, or us$ 4.39 per share, compared with a year-earlier profit of us$ 6.6 million, or 21 cents per share.
Net revenue fell to us$ 198.3 million from us$ 216.6 million.