NEW YORK, Nov 28 (Reuters) - Casino operator Trump Entertainment Resorts Inc said on Friday it will not make a $53.1 million bond interest payment due on December 1 as part of a strategy to 'maintain sufficient liquidity.'
Trump said a 30-day grace period will apply to the missed interest payment and that during this period it will pursue discussions with lenders to restructure the company's capital structure.
The casino company said its board has established a special committee of independent directors to oversee these discussions but there can be no assurance that any agreement will be reached.
Trump Entertainment, chaired by property magnate Donald Trump, was created out of a bankruptcy restructuring in 2005.
Its shares have fallen from $5.70 last December to a close of 31 cents on Friday.
Casino companies have suffered over the past year as the gambling boom in Las Vegas has fizzled, tight credit markets have jeopardized growth plans and the Chinese government has acted to slow down the Macau gambling market. For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers) Keywords: TRUMP/ (Reporting by Mark McSherry; Editing by Bernard Orr; mark.mcsherry@thomsonreuters.com; +646 223 6094) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Trump said a 30-day grace period will apply to the missed interest payment and that during this period it will pursue discussions with lenders to restructure the company's capital structure.
The casino company said its board has established a special committee of independent directors to oversee these discussions but there can be no assurance that any agreement will be reached.
Trump Entertainment, chaired by property magnate Donald Trump, was created out of a bankruptcy restructuring in 2005.
Its shares have fallen from $5.70 last December to a close of 31 cents on Friday.
Casino companies have suffered over the past year as the gambling boom in Las Vegas has fizzled, tight credit markets have jeopardized growth plans and the Chinese government has acted to slow down the Macau gambling market. For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers) Keywords: TRUMP/ (Reporting by Mark McSherry; Editing by Bernard Orr; mark.mcsherry@thomsonreuters.com; +646 223 6094) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.