Donald Trump intends to repossess casinos

The bondholders are resisting the move as the acquisition by Trump would render their securities worthless.

Trump Entertainment owns three properties, the Trump Taj Mahal, Trump Plaza and Trump Marina in the Atlantic City, New Jersey. Ironically, the companies are seeking bankruptcy protection for a third time.

The deal
Trump, along with BNAC Inc, an affiliate of Beal Bank Nevada, intend to bail out the casino company for $100 million. The deal is subject to an approval from the bankruptcy court.

Trump Chief Executive Mark Juliano, “This plan had the ability to market and use the Trump name so it had a very strong brand attached to it. We expect and hope that the plan will be approved or confirmed."

The deal entails an eight-year extension on the maturity period of the $486 million debt that the company owes to Beal Bank. The loan will thus mature in the December of 2020 instead of 2012.

In a securities filing, the casino revealed that the bank has also reduced the interest rate on the debt.

The deal "offered really attractive rates on the interest, including a mechanism to defer interest and principal, really, if cash flow weren't there", Juliano said.

If this debt structuring sees the light of the day, the debt holders can expect a 94 percent recovery on their investment.

Trump Entertainment's management and board have already given a go ahead to the plan.

The business magnate: Donald Trump
Trump is the man behind the genesis of the casino operator. He is the founder and has also worked in the capacity of chairman in the company.

The company had, on the insistence of the bondholders, gone in for a Chapter 11 bankruptcy filing after the casino failed to honor a $53.1 million bond interest payment.

The billionaire mogul is now all pepped up to make the casino rock. He said of the acquisition, "My daughter Ivanka and I will work tirelessly to make this company great again. As I have done in the past, we will make Atlantic City hot once more."