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Trump Optimistic About Future for Gambling Company

24 September 2004

NEW YORK -- As reported by Reuters: "A scuttled deal to rebuild Donald Trump's casino empire on Thursday left the star of "The Apprentice" optimistic he could forge a new agreement, but bond analysts were wary of the prospects for the money-losing gambling company.

"Trump Hotels and Casino Resorts Inc. (OTC BB:DJTC.OB) said late Wednesday that it and DLJ Merchant Banking Partners had scrapped a plan for a $400 million cash infusion and restructuring of the company's $1.8 billion in debt in a "prepackaged" bankruptcy.

"Trump AC 11.625 percent bonds traded at 82 cents on the dollar, down 2 cents from Wednesday's close, traders said.

"…A number of bondholders had objected to the restructuring terms and Barbara Cappaert, high yield analyst at KDP Investment Advisors Inc., said the exit by DLJ, an affiliate of global investment banking giant Credit Suisse First Boston (CSGN.VX), would make a deal less appetizing.

"…Trump, who has consistently downplayed the financial importance of his floundering casino empire, said it represents only about 1 percent of his net worth and insisted its troubles would not tarnish his image.

"Trump has a majority stake in the casino company, but the company's market capitalization, about $15 million, is a fraction of its debt burden. Trump's main real estate holdings are in a different company…"

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