After seeing his casinos go bankrupt for a third time, Donald Trump has proposed to take back control of Trump Entertainment Inc. and take them private.
Trump quit the company’s board of directors, along with daughter Ivanka, the weekend before the company declared bankruptcy. At the time, Trump stated that he will be severing all ties.
Under Trump’s proposal he would return as an owner to the company, restructure the debt, and remove the company from the public markets.
The offer is currently before the existing board of directors, who are also considering a takeover bid from bondholders who currently control the company. The terms of both proposals have not been released in bankruptcy court and remain confidential. Bankruptcy Court Judge Judith Wizmur has given the company until Aug. 3 to consider the competing plans.
Trump Entertainment remains one of the biggest casino players in town. It owns the Trump Taj Mahal, Trump Plaza, and Trump Marina casinos, making it second only to Harrah's Entertainment Inc., which owns four Atlantic City gambling halls. The three Trump casinos employ about 8,500 in the region.
Atlantic City casino gambling revenue has tumbled 16 percent this year through May, following a record decline in 2008. Trump Entertainment, based in Atlantic City, listed assets of $2.06 billion and debt of $1.74 billion as of Dec. 31, according to bankruptcy filings.
Trump Entertainment's shares have plummeted 99 percent in the last two years, closing at $15 on June 19, 2007, but at only 18 cents a share in over-the-counter trading yesterday.
The company's stock was delisted from the Nasdaq exchange starting Feb. 26, after dipping below $1 a share.
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