Casinos.co.uk: Casino News Archive
Wednesday 29th September 2004
Trump Hotels part ways with DLJ Merchant Banking Partners
The planned alliance between Trump Hotels & Casino Resorts Inc and DLJ Merchant Banking Partners, has been abandoned. A statement was released last week announcing that the venture between the two parties was now to be dropped, apparently by mutual agreement. The investment bank and the troubled casino and hotel company had previously announced a restructuring and refinancing plan in an attempt to salvage the battling company from its overwhelming debts.
Currently the Trump company owes around US$1.8 billion, and faced with overwhelming interest payments, has been unable to progress as a company in the face of increasing competition. The three casino sites based in Atlantic City have been left unable to expand or improve venues or services, and therefore unable to keep up with their fellow Atlantic City competitors.
The plan developed between the two companies would have involved Donald Trump stepping down as CEO and relinquishing his majority stake in the company, while the company still kept its name and operated as a Trump company. This plan is now entirely shelved following this agreement to part company in terms of this attempt at resurrection. Representatives of the investment bank, a private equity branch of Credit Suisse First Boston, have declined to make any comment following the announcement. Donald Trump meanwhile has revealed that he may now explore a privatisation plan for the company, following this latest development. Shares in Trump Hotels & Casino Resorts, fell by 10 percent, or by 5 cents, to 44 cents per share, the day after the announcement was made.
Source:OnlineCasinoNews
| Discuss this story in the Gambling.co.uk Forums. Last five forum Posts: |
|
|
|
|
|
|
|
|
|
