Trump's hotels and casino in financial trouble
Is Trump getting trumped?
Auditors of Trump Hotels & Casino express doubt that it can continue as a 'going concern.'
March 31, 2004: 8:17 AM EST
NEW YORK (CNN/Money) - He may have a hit TV show, a new book and a stable of high-profile real estate, but "The Donald's" Trump Hotels & Casino Resorts Inc. may be on shaky ground.
In a statement accompanying Trump Hotels' annual regulatory filing, the company's auditors, Ernst & Young, said there are conditions that "raise substantial doubt about the company's ability to continue as a going concern."
Auditors' statements in annual filings usually are standard statements; it's rare for an auditing firm to question the client's ability to continue as a company.
Ernst & Young cited increased competition, continuing operating losses and a capital deficit at Trump Hotels & Casino (DJT: Research, Estimates).
In its filing, Trump Hotels singled out the new 2,000-room Borgata hotel in Atlantic City, N. J., a venture owned by Boyd Gaming and MGM Mirage, as having a negative impact on its business.
Trump Hotels also said its $1.8 billion in debt and accompanying interest payments were prohibiting it from reinvesting in its properties, and it has been looking at ways to restructure.
The company said its options include asset sales, in-court restructuring of debt (read bankruptcy filing), or finding new equity investments.
Trump Hotels said a unit of Credit Suisse First Boston has proposed a $400 million equity investment in the company.
Ernst & Young noted that "absent the successful completion of one of these alternatives, the company's operating results will increasingly become uncertain."
Donald Trump has seen a revival with his hit TV show "The Apprentice," which recently aired an episode in the Trump Hotel & Casino in Atlantic City, and his subsequent book "Trump: How to Get Rich."
Since I'm new to the board, I'm not allowed to post a link to the story.
Hi, and welcome.
What does you being new have to do with not posting links?
New York Post has a long article all about this issue.
I was hoping someone would post this article.
This show has been great free publicity for DT, think it will help his casino?
Last edited by Noreen; 03-31-2004 at 11:52 AM.
I can't remember the exact sentence, but it was along the lines of since I'm not known, the link might be considered spam.
Originally Posted by justvisiting
The above article is from CNN/Money's web site.
i can't hurt but the native american casinos opening all over the North east will probably continue to hurt his business long after the hype of the show passes.....
the "job" is to take control of one of his companys so maybe the casino is the "company" that will be taken over. would bring in a few more people.
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