TRMPQ - Trump EntertainmentTrump Entertainment Resorts, Inc. was formed in 2005 as a result of restructuring of the company called Trump Hotels & Casino Resorts. The company mainly owns and operates casinos in Atlantic City, New Jersey. After the restructuring, the previous Chairman of the Board of Directors Donald J. Trump relinquished his former position to the new boss Mark Juliano, who still holds the post.
The creation of Trump Entertainment Resorts, Inc. involved managing huge debts of the previous company Trump Hotels & Casino Resorts; this was done among huge speculation of the company going bankrupt. After an agreement with existing investors in 2004 Donald Trump, then majority of the shareholders, reduced their ownership to 27% from 56%. All of the other shareholders also made some debt recovery by surrendering some of their stocks. In 2004, Morgan Stanley was announced as the joint lead for arranging a financial backup of $500 million; this was a primary part in the restructuring to come ahead. After filing for Chapter 11, in November, 2004, it was said that the filing of chapter 11 was just a mere "technicality" and only filed as it was most convenient for the restructuring to come ahead. In late 2004, the plan for restructuring was submitted to the bankruptcy court and after successfully restructuring the company was rechristened as Trump Entertainment Resorts, Inc.
The company steadily recovered from debts at a snail’s pace, but in 2007 they announced the negotiations for buyouts of several private and public businesses and later that year they again announced that the negotiations "fell through" and were not completed. By this time the debt recovery slowed down to nearly a halt and severely hurt the company's expense accounts and cut-backs were necessary to keep them afloat. A huge lay-off was proposed to reduce expenses on staff salaries.
Their inability to recover from the original debt as well as the later debts acquired by the restructured company forced them to file for Chapter 11 in 2009. Along with the company all of their 9 affiliates, including Trump Taj Mahal, Trump Marina, and Trump Plaza Associates, also filed for bankruptcy at the same time.
On 3rd of August, it was announced that Beal Bank, Nevada and Donald Trump have bought Trump Entertainment Resorts, Inc. for a $100 million and they will go on to make the company completely privately owned with, publicly undisclosed terms and conditions between Donald Trump and the Beal Bank.