Gaming Activites Company Emerges From Chapter 11
Trump and bankruptcy - two words you would not expect to hear together
Jul 18, 2010
Multi-billionaire, Donald J. Trump, is probably one of the last people you would link with the word bankruptcy. However, Trump Entertainment Resorts, Inc., which conducts Trump's gaming activities is emerging today from Chapter 11 bankruptcy. Donald Trump's gaming company is wisely separate and distinct from his real estate and other holdings.
Pursuant to the confirmed reorganization plan, US$225 million of new equity has been injected into the company, including US$125 million intended for the reduction of pre-petition debt. Through the reorganization process, the company has eliminated approximately US$1.3 billion in debt. Additionally, the company will be able to retain the Trump brand for Atlantic City operations.
Donald J. Trump and his daughter, Ivanka Trump, supported the confirmed plan of reorganization.
Earlier this week, the New Jersey Casino Control Commission granted Trump Entertainment Resorts the required approvals to consummate the approved plan of reorganization. The Casino Control Commission also approved several petitions of Avenue Capital Group and affiliated companies necessary for the transaction to be completed and for Marc Lasry to assume the position of chairman of the board of the reorganized company. Mr. Lasry is the chairman and chief executive officer of Avenue Capital Group, a global investment firm, which served as the lead bondholder throughout the reorganization process and is now the largest shareholder of the reorganized Company.
Mr. Lasry commented, "Trump Entertainment Resorts today begins a period marked by new financial strength. Having just completed the transaction that made the company's emergence official, I am more excited than ever about the future."
Mark Juliano, the chief executive officer of the company and a member of the newly-established board of directors, noted, "Our company is now well-capitalized and possesses a long-term strategy for growth. Our new board of directors and ownership group have made it clear that they are dedicated to the success of the company over both the short- and long-terms. We are excited about the new chapter that begins today for Trump Entertainment Resorts."
Mr. Juliano further thanked Trump Entertainment Resorts' employees for their continued dedication through the reorganization process. "The focus and support of our team in Atlantic City has truly been extraordinary, and I want to thank them for their perseverance. I know now more clearly than ever that our team is second to none, and I look forward to sharing our future successes together," he said.