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Trump Files for Bankruptcy Protection

NEW JERSEY– As reported by the CBS MarketWatch: "Trump Hotels & Casino Resorts Inc. filed for bankruptcy protection over the weekend, an outgrowth of the debt-laden company's latest plan to secure desperately needed financing.

"First announced in mid-October, the deal is designed to reduce the company's IOUs by about $400 million and cut its interest rates to a still-hefty 8.5 percent, saving about $98 million a year. The company will get a working capital facility of up to $500 million in addition to an immediate $100 million in emergency capital from Beal Bank. Trump needs the money just to keep the lights on as the bankruptcy goes forward.

"…Trump Hotels (DJTC) has repeatedly teetered on the brink of default in recent years, using grace periods to come up with just the interest payments on its massive debt. The latest plan is secured by a lien on virtually all of the company's assets.

"…Trump's casinos have never turned a profit; this is the company's second descent into Chapter 11…"

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