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Trump To Make Interest Payments2 April 2002ATLANTIC CITY, New Jersey –As reported by the Press of Atlantic City: " Donald Trump's casino company said it should have enough cash to make interest payments for the whole year, raising doubts that bondholders will agree to a debt restructuring any time soon. "Trump Hotels & Casino Resorts Inc., however, said that it needs extra cash now to compete with large casino expansions and a new casino, all due to open during the next two years, as well as anticipated casinos in New York. "…The company has been trying for five months to get bondholders to accept undisclosed lower interest rates and extended maturities involving $1.7 billion in debt. Its interest rates range between 101/4 and 151/2 percent. "..`Although the company was able to reduce its corporate expenses in 2001 and increase consolidated earnings before interest, taxes, depreciation and amortization by approximately $19.5 million on slightly declining net revenues, there is a limit as to how much further corporate expenses can be reduced and uncertainty as to whether recent levels of expense reduction can be maintained,' Trump Hotels said in its report. The company's next major interest payment, $73.1 million due to Taj Mahal/Plaza bondholders, is due in 29 days. "Trump Hotels said it also met recently with `certain holders' of the $242.1 million in Trump Marina bonds `to discuss preliminary matters concerning a possible transaction.'…" |