Trump to regain control of Atlantic City Casinos

One of the world's most high profile real estate tycoons, Donald Trump, has announced plans to reassume control of Trump entertainment Resorts. The Atlantic City based casino operator is currently facing yet another bankruptcy episode making this the third in its turbulent history. Trump hopes to buy back the company for $100 million together with BNAC, an affiliate of Beal Bank of Nevada. The move marks a return for Trump who resigned as chairman of the company last February. The company failed to meet a $53.1 million bond interest payment and triggered a chapter 11 filing. Trump says the decision is an important bid to regain control over a once successful business. The proposal is currently awaiting approval from the bankruptcy court.

A securities filing revealed that Trump Entertainment faces a $486 million debt and will pursue an 8 year extension on the maturity period with a reduced interest rate. Whilst Beal Bank and Beal Bank Nevada can anticipate a 94% recovery on their investment, others can be far less optimistic. Holders of 8.5% senior secured notes in addition to those of unsecured claims and equity can expect little in the way of return.

Jane Pedreira, managing director for Clear Sights Research, said that many will be expressing grave concern over the company's projected revenue over the next five years. "They're expecting a 13 percent EBTDA margin," a proportion she called "pretty low" and one likely to unsettle bondholders. But Trump Chief Executive, Mark Juliano, claims the plan "had the ability to market and use the Trump name" and added "We expect and hope that the plan will be approved or confirmed".